Question

Exercise 16-6 The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs 1. Transferred out 13,300 units. Beginning work in process $0 2. Started 4,900 units that are 60% Materials 63,154 complete as to conversion Labor 26,458 costs and 100% complete as Manufacturing overhead 20,800 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production Link to Text Link to Text Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials $ Conversion costs $ Link to Text Link to Text Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Cost Reconciliation Costs accounted for Transferred out $ Work in process, July 31 Materials $ Conversion costs Total costs $

Answer 1

Answer:

A)
		Completion %
	Nos	Material	Equivalent units	Conversion Cost	Equivalent units
Units transferred	13,300	100%	13,300	100%	13,300
WIP on 31st July	4,900	100%	4,900	60%	2,940
Total Equivalent unit			18,200		16,240

b)
	Material Cost	Conversion cost
Total cost incurred during the period	63,154	47,258
Equivalent Units	18,200	16,240
Cost per equivanlent unit	$ 3.47	$ 2.91

c)
Cost Reconciliation
	Amount($)
Costs accounted for($63,154+47,258)	1,10,412
Transferred out(13,300*(3.47+2.91))	84,854
Work in process, July 31
Materials(4,900*3.47)	17,003
Conversion costs(4,900*2.91)*60%	8,555
Total Cost	1,10,412