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 Fill In Started into production Fill In Total units Fill In Units accounted for Completed and transferred out Work in process, August 1 Fill In Fill In Fill In Started and completed Fill In Fill In Fill In Work in process, August 31 Fill In Fill In Fill In Total units Fill In Fill In Fill In Costs Unit costs Costs in August $ Fill In $ Fill In Equivalent units Fill In Fill In Unit costs $Fill In $ Fill In Costs to be accounted for Work in process, August 1 $ Fill In Added into production Fill In Total costs $ Fill In

Answer 1

Requirement 1: The equivalent units of production for materials and conversion costs.

Particulars	Hockey Pucks	Soccer Balls
Material	1,550	2,020
Conversion cost	1,496	1,967

Requirement 2. The unit costs of production for materials and conversion costs.

Particulars	Hockey Pucks	Soccer Balls
Materials	$1.000	$1.600
Conversion costs	$1.352	$1.400

Requirement 3. The assignment of costs to units transferred out and to work in process at the end of the accounting period.

Particulars	Hockey Pucks	Soccer Balls
Beginning work in process	$1,040	$440
Complete beginning work in process	$162	$38
Started and completed	$2,281	$5,460
Ending work in process	$1,129	$488

Requirement 4 Prepare the production cost report as follows

J Inc Production Cost Report - Hockey Pucks for the Month Ended August, 31 Units to be accounted for Equivalent Units Material Conversion Work in process. August Started into production Total units to be accounted for Physical units 400 1550 1.950 Units accounted for Work in process, August 1 Started and completed Work in process, August 31 Total units accounted for 4000 9700 9701 580 580 1,950 1,550 120 970 406 1.496 Costs Unit Costs Costs added in August - Equivalent units Units cost Material $1,550 1.550 $1.000 Conversion $2.022 1,496 $1.352 Costs to be accounted for Work in process, August 1 Added in to production ($1,550 + $1,130 + 892) Total costs $1.040 $3,572 $4.612 Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, August 1 Beginning inventory completed Started and completed ($970+ 1.311) Work in process. August 31 Material ($1 x 580 units) Conversion ($1.352 x 406 units) Total costs $1.040 $162 $2,281 $3,483 $580 $549 $1.129 $4,612

Notes: Hockey Pucks

Hockey Pucks 1. Physical Units Units to be accounted for Work-in-process units, August 1 Units started into production Total units to be accounted for 400 1.550 1,950 Units accounted for Work-in-process units, August 1 Units started and completed Work-in-process units. August 31 Total units accounted for 400 970 580 1,950 Equivalent units - Materials Physical Units Material Added Equivalent Units 0% Work-in-process units. August 1 Units started and completed Work-in-process units, August 31 400 970 5801 1,950 100% 100% 970 580 1.550 Total Equivalent units - Conversion Physical Units Conversion Added 30% 400 970 Work-in-process units, August 1 (100% - 70%) Units started and completed Work-in-process units, August 31 Total Equivalent Units 120 970 406 1.496 100% 70% 580 1.950 Unit Costs Cost added in August ($1.130 + $892) Equivalent units Unit costs $1,550 1,5501 $1.000 $2.022 1,496 $1.352 | Material Conversion Beginning WIP $1,040 Total $1,040 Beginning work in process Costs added to beginning work in process Material ($1 x 0 units) Conversion ($1.352 x 120 units) SO $162 $162 Started and completed Material ($1 x 970 units) Conversion ($1.352 x 970 units) $970 $970 $1,311 $1,311 $580 Ending work in process Material ($1 x 580 units) Conversion ($1.352 x 406 units) Total costs $549 $580 $549 $4,612

Notes: Soccer Balls

1. Physical Units
Units to be accounted for	Soccer Balls
Work-in-process units, August 1	270
Units started into production	2,020
Total units to be accounted for	2,290
Units accounted for
Work-in-process units, August 1	270
Units started and completed	1,820
Work-in-process units, August 31	200
Total units accounted for	2,290
Equivalent units - Materials	Physical Units	Material Added	Equivalent Units
Work-in-process units, August 1	270	0%	0
Units started and completed	1,820	100%	1820
Work-in-process units, August 31	200	100%	200
Total	2,290		2,020
Equivalent units - Conversion	Physical Units	Conversion Added	Equivalent Units
Work-in-process units, August 1 (100% − 90%)	270	10%	27
Units started and completed	1,820	100%	1820
Work-in-process units, August 31	200	60%	120
Total	2,290		1,967
Unit Costs	Material	Conversion
Cost added in August (Conversion: $970 + 1,784)	$3,232	$2,754
÷ Equivalent units	2,020	1,967
Unit costs	$1.600	$1.400
	Beginning WIP	Material	Conversion	Total
Beginning work in process	$440			$440
Costs added to beginning work in process
Material ($1.60 × 0 units)		$0		$0
Conversion ($1.40 × 27 units)			$38	$38
Started and completed
Material ($1.6 × 1,820 units)		$2,912		$2,912
Conversion ($1.40 × 1,820 units)			$2,548	$2,548
Ending work in process
Material ($1.6 × 200 units)		$320		$320
Conversion ($1.352 × 120 units)			$168	$168
Total costs				$6,426