Question

Draw Page Layout Formulas Data Review View Calibri (Body) 11 A = = = 2 2 Wrap Text General Insert -X Cut b Copy ~ Format x A S E E Merge & Center $ % % -98 Conditional Form Formatting as Ta! BIV x ACCT 301 Week 6 HW Exercise 4 Process contestem Step 1 Physical flow begin WIP 4000 End WIP Started 2000 Transferred out 4000 The Finishing Department of Cosette Company has the following production and cost data for July 1 Beginning Inventory 4000 units 2 Transferred out, 4,000 units. Beginning 4000 units 3 Started 2,000 units that are 40% completed at July 31. 4 Materials added, $30.000 conversion costs incurred, $19,200. Physical Units Equivalent Units Materials Conversion Costs 4,000 Transferred Out Work in Process, July 31 Total Materials are entered at the beginning of the process. Conversion costs, %, are incurred uniformly during the process Unit costs Materials cost per unit 530.000 + x units Compute the equivalent unts of production for materials and conversion costs for the month of July. Compute unit costs and prepare a cost reconciliation schedule Conversion cost per unit 1519,200 y unit Conversion Labor plus overhead Prime materials and labor Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs

Answer 1

Step 1)Physical flow:

Beginning +started =Transferred out +ending WIP

4000+2000 = 4000+ ending WIP

ending WIP = 6000 -4000

               = 2000 units

a)

		conversion cost
	Physical units	material cost	conversion cost
Transferred out	4000	4000	4000
Ending WIP inventory	2000	2000	2000*40%= 800
Total	6000	6000	4800

b)

Unit cost			unit cost
material cost per unit	material Cost incurred during the period/Equivalent unit	30000/6000	$ 5 per equivalent unit
conversion cost per unit	conversion Cost incurred during the period/Equivalent unit	19200/4800	$ 4 per equivalent unit
			$ 9 per unit

cost reconciliation schedule
cost accounted for
	Transferred out	4000*9=36000
	work in process July 31
	Material	2000*5=10000
	conversion	800*4= 3200
Total cost		49200