Question

1. Travel Company produces travel bags in a single pEOCESS WA The accounting and production records for the cospany show for the month of June : HARE Beginning work in process (100% complete as to materials and 75% complete as to labor and overhead) Process manufacturing plant. pany show the following information Units started 8,000 units Ending work in process C100% complete as to materials and 40% complete as to labor and overhead) 52.000 units 4.000 units SUMMARY OF COSTS: Work-in-process, beginning Inventory. Materials work-in-process, beginning inventory, Conversion cost Added costs: Materials used Conversion cost incurred $ 25.600 27,600 182,000 237,360 081ng FIFO METHOD prepare production report and then answer questions on the next page. (You must show your calculations

Answer 1

Production report: D C The Travel Company Production Report For the Month of June Units accounted for: 8,000 Units completed 52.000 Units, ending work in process 60.000 Total units accounted for 1 2 Units to account for: 3 Units, beginning work in process 4 Units started 5 Total units to account for 56,000 4.000 0.000 6 Equivalent Units Direct Materials 48,000 0 9 Units started and completed 10 Units, beginning work in process 11 Units, ending work in process 12 Equivalent units of output 48.000 8,000 4.000 60,000 Conversion Costs 48,000 2.0001 1,600 51,600 52.000 13 COST INFORMATION Direct Materials Conversion Costs Total $25,600 $182.000 $207,600 16 Costs to account for: 17 Beginning work in process Incurred during the period 19 Total costs to account for 20 Cost per equivalent unit: 21 Current costs 22 Divided by equivalent units 23 Cost per equivalent unit $27,600 $237,360 $264.960 $53,200 $419,360 $472,560 $182,000 52.000 $3.50 $237,360 51.6001 $4.60 25 Costs accounted for: 26 Units transferred out: 27 Units, beginning work in process: 28 From prior period 29 From current period 30 Units started and completed 31 Ending work in process: 32 Direct materials 33 Conversion costs 34 Total costs accounted for $53,200 $9,200 $388,800 $451,200 $14,000 $7.360 $21,360 $472,560

Calculations are shown below: B The Travel Company Production Report For the Month of June Units accounted for: 8000 Units completed =D5-D4 52000 Units, ending work in process 4000 =B3+B4 Total units accounted for =B5 2 Units to account for: 3 Units, beginning work in process 4 Units started 5 Total units to account for Equivalent Units 9 Units started and completed 10 Units, beginning work in process 11 Units, ending work in process 12 Equivalent units of output =D3-B3 =B3 =B3 =B12-B9-B10 =B5 Direct Materials =B9*100% =B10*(100%-100%) =B11*100% =SUMC9:Cil) Conversion Costs =B9*100% =B10*(100%-75%) =B11*40% =SUMD9:011) COST INFORMATION Direct Materials Conversion Costs Total 25600 182000 =B17+B18 27600 237360 =C17+C18 =B17+C17 =B18+C18 =D17+D18 16 Costs to account for: 17 Beginning work in process 18 Incurred during the period 19 Total costs to account for 20 Cost per equivalent unit: 21 Current costs 22 Divided by equivalent units 23 Cost per equivalent unit =B18 EC12 =B21/B22 =C18 =D12 =C21/C22 25 Costs accounted for: 26 Units transferred out: 27 Units, beginning work in process: 28 From prior period 29 From current period 30 Units started and completed 31 Ending work in process: 32 Direct materials 33 Conversion costs 34 Total costs accounted for =D17 =(C10*B23)+(D10*С23) =(C9*B23)+(D9*C23) |=SUM(C28:C30) =C11*B23 =D11*C23 =C32+C33 =D30+D33