Question

Exercise 16-13 The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units, 1/10 complete Materials $18,400 Units transferred out 54,600 Conversion costs 14,660 $33,060 Units started 51,500 Materials 252,920 Ending work in process 11,900 units, 1/5 complete Labor 67,200 Overhead 88,510 Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.) HEALTHY MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2017 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, February 1 Started into production Total units Units accounted for Transferred out Work in process, February 28 Total units Costs Materials Conversion Costs Total Unit costs Total Costs $ $ $ Equivalent units Unit costs $ $ $ Costs to be accounted for Work in process, February 1 $ Started into production Total costs $ Cost Reconciliation Schedule Costs accounted for Transferred out $ Work in process, February 28 Materials $ Conversion costs Total costs $

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				15,000
Add: Units Started in Process				51,500
Total Units to account for:				66,500
UNITS TO BE ACCOUNTED FOR:
Units completed				54,600
Ending Work in Process				11,900
Total Units to be accounted for:				66,500
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units started and completed			100%	54,600	100%	54,600
Ending Work in Process			100%	11,900	20%	2,380
Total Equivalent units				66,500		56,980
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Beginning work in Process			18,400		14,660
Cost Added during May			252,920		155,710
Total Cost to account for:			271,320		170,370
Total Cost to account for:					441,690
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			271,320		170,370
Equivalent Units			66,500		56,980
Cost per Equivalent unit			4.08		2.99
TOTAL COST ACCOUNTED FOR:
Units Transferred out (54600 units)
			Equivalent unit	Cost per EU	Total Cost
Material			54,600	4.08	222768
Conversion Cost			54,600	2.99	163254
Total Cost of Units completed and transferred out:					386022
Ending Work in process (11900 units)
			Equivalent unit	Cost per EU	Total Cost
Material			11,900	4.08	48552
Conversison Cost			2,380	2.99	7116
Total cost of Ending Work in process:					55,668
Cost Reconciliation schedule:
Cost of Beginning WIP				33060
Current cost incurred:
Material				252920
Conversion		(67200+88510)		155710
Cost to account for				441690
Cost accounted for:
Cost of units transferred out				386022
Cost of ending WIP				55668
Cost accounted for:				441690