Question

1. Production Report, No Beginning Inventory

   Softkin Company manufactures sun protection lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year:

   Work in process, January 1	—
   Gallons started	450,000
   Gallons transferred out	378,000
   Direct materials cost	$900,000
   Direct labor cost	$1,785,600
   Overhead applied	$2,678,400

   Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead.

   Required:

   Prepare a production report for the Mixing Department for the current year. If an amount is zero, enter "0".

   Softkin Company
   Mixing Department
   Production Report for Current Year
   Unit Information
   Units to account for:
   Ending work in process Units completed Units in beginning WIP Units in ending WIP Units to account for
   Ending work in process Units completed Units in ending WIP Units started Units to account for
   Total units to account for
   Units accounted for:
   		Equivalent Units
   	Physical Flow	Direct Materials	Conversion Costs
   Ending work in process Units completed Units in beginning WIP Units started Units to account for
   Units completed Units in beginning WIP Units in ending WIP Units started Units to account for
   Total units accounted for
   Cost Information
   Costs to account for:
   	Direct Materials	Conversion Costs	Total
   Costs in beginning WIP Costs in ending work in process Cost per equivalent unit Costs to account for	$	$	$
   Costs added by department Costs in ending work in process Cost per equivalent unit Costs to account for
   Total costs to account for	$	$	$
   Cost per equivalent unit	$	$	$
   Costs accounted for:
   Costs added by department Costs in beginning WIP Units completed Units in beginning WIP Units started			$
   Beginning work in process Costs added by department Costs in beginning WIP Cost per equivalent unit Ending work in process
   Total costs accounted for			$

Answer 1

Prepare a production report for the Mixing Department for the current year. If an amount is zero, enter "0".

Softkin Company
Mixing Department
Production Report for Current Year
Unit Information
Units to account for:
Units in beginning WIP			0
Units started			450000
Total units to account for			450000
Units accounted for:
		Equivalent Units
	Physical Flow	Direct Materials	Conversion Costs
Unit transferred out	378000	378000	378000
Units in ending WIP	72000	72000	72000*95% = 68400
Total units accounted for	450000	450000	446400
Cost Information
Costs to account for:
	Direct Materials	Conversion Costs	Total
Costs in beginning WIP	$0	$0	$0
Costs added by department	900000	4464000	5364000
Total costs to account for	$900000	$4464000	$5364000
Cost per equivalent unit	$2	$10	$12
Costs accounted for:
Units completed (378000*12)			$4536000
Ending work in process (72000*2+68400*10)			828000
Total costs accounted for			$5364000