Question

*Problem 4-47A

Jessica Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred evenly. Jessica uses the FIFO method to calculate equivalent units. Production and cost data for the month of August are as follows: Production Data—Hockey pucks Units Percent Complete Work in process units, August 1 400 70% Units started into production 1,550 Work in process units, August 31 580 30% Cost Data—Hockey pucks Work in process, August 1 $1,040 Direct materials 1,550 Direct labour 1,130 Manufacturing overhead 892 Production Data—Soccer balls Work in process units, August 1 270 90% Units started into production 2,020 Work in process units, August 31 200 60% Cost Data—Soccer balls Work in process, August 1 $440 Direct materials 3,232 Direct labour 970 Manufacturing overhead 1,784

Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, e.g. 5,275. Round per unit costs to the 3 decimal places, e.g. 15.253.) 1. The equivalent units of production for materials and conversion costs. Hockey pucks Soccer balls Materials Conversion Cost 2. The unit costs of production for materials and conversion costs. Hockey pucks Soccer balls Materials $ $ Conversion Cost $ $ 3. The assignment of costs to units transferred out and to work in process at the end of the accounting period. Hockey pucks Soccer balls Beginning WIP $ $ Complete beginning WIP $ $ Started and completed $ $ Ending WIP $ $

Prepare a production cost report for the month of August for the hockey pucks only. (Round unit cost to 3 decimal places, e.g. 15.251 and other answers to to the nearest whole dollar, e.g. 5,275.) JESSICA COMPANY Production Cost Report—Hockey pucks For the Month Ended August 31 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, August 1 Started into production Total units Units accounted for Completed and transferred out Work in process, August 1 Started and completed Work in process, August 31 Total units Costs Unit costs Costs in August $ $ Equivalent units Unit costs $ $ Costs to be accounted for Work in process, August 1 $ Added into production Total costs $

Answer 1

Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, e.g. 5,275. Round per unit costs to the 3 decimal places, e.g. 15.253.) 1. The equivalent units of production for materials and conversion costs. Hockey pucks Soccer balls Materials 1550 2020 Conversion Cost (400*30%+970+580*30%) = 1264 (270*10%+1820+200*60%) = 1967 2. The unit costs of production for materials and conversion costs. Hockey pucks Soccer balls Materials $1550/1550 = 1 $3232/2020 = 1.60 Conversion Cost $2022/1264 = 1.60 $2754/1967 = 1.40 3. The assignment of costs to units transferred out and to work in process at the end of the accounting period. Hockey pucks Soccer balls Beginning WIP $1040 $440 Complete beginning WIP $120 $43 Started and completed $970*2.6 = 2522 $5460 Ending WIP $858 $488

Prepare a production cost report for the month of August for the hockey pucks only. (Round unit cost to 3 decimal places, e.g. 15.251 and other answers to to the nearest whole dollar, e.g. 5,275.) JESSICA COMPANY Production Cost Report—Hockey pucks For the Month Ended August 31 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, August 1 400 Started into production 1550 Total units 1950 Units accounted for Completed and transferred out Work in process, August 1 400 0 400*30% = 120 Started and completed 970 970 970 Work in process, August 31 580 580 580*30% = 174 Total units 1950 1550 1264 Costs Unit costs Costs in August $1550 $2022 Equivalent units 1550 1264 Unit costs $1 $1.60 Costs to be accounted for Work in process, August 1 $1040 Added into production 3572 Total costs $4612