Question

Brainerd Corporation adds all materials at the beginning of production. On August 1, 2019, 1,400 gallons of its product were in production in the first department. During the month of August, 10,600 gallons were put into production. On August 31, 1,900 gallons were still in production. The ending inventory is estimated to be 70 percent complete as to labor and overhead. Cost data for the month follows:

	Materials			Labor			Overhead
Beginning inventory of work in process	$	7,560		$	5,100		$	2,550
Added during August		40,200			20,046			13,452

Required:
Prepare a cost of production report for the month of August, assuming that the average cost method is used.


Analyze:
How many gallons of product will be held as beginning inventory of work in process on September 1 for the first department? What is the total cost for this quantity of product?

Complete this question by entering your answers in the tabs below.

• Equivalent Units
• Cost of Production
• Analyze
• Total Cost

Prepare a cost of production report for the month of August, assuming that the average cost method is used.

	BRAINERD CORPORATION Equivalent Unit Production Computations Month Ended August 31, 2019 First Department Materials: Units transferred out to next department Work in process Equivalent units of production for materials 0 Labor and Manufacturing Overhead: Units transferred out to next department Work in process Equivalent units of production for labor and overhead 0

• Cost of Production
• Analyze
• Total Cost

Prepare a cost of production report. (Round your Unit cost answers to 2 decimal places.)

BRAINERD CORPORATION Cost of Production Report Month Ended August 31, 2019 QUANTITY SCHEDULE (a) Quantity to be accounted for Work in process—beginning Started in production Total to be accounted for 0 (b) Quantity accounted for Transferred out to next department Work in process—ending Total accounted for 0 COST SCHEDULE TOTAL COST E.P. UNITS UNIT COST (c) Costs to be accounted for Costs in current department Work in process—beginning Materials Labor Overhead Materials Labor Manufacturing overhead Cumulative cost total $0 $0.00 (d) Costs accounted for Transferred out to next department Work in process—ending Materials Labor Manufacturing overhead Rounding adjustment Total work in process—ending $0 Total costs accounted for $0

How many gallons of product will be held as beginning inventory of work in process on September 1 for the first department?

	Work in process inventory on Sep. 1 gallons

What is the total cost for this quantity of product?

	Total cost

Answer 1

BRAINERD CORPORATION
Equivalent Unit Production Computations
Month Ended August 31, 2019
First Department
Materials: Units transferred out to next department	10100
Work in process	1900
Equivalent units of production for materials	12000
Labor and Manufacturing Overhead:
Units transferred out to next department	10100
Work in process (1900 x 70%)	1330
Equivalent units of production for labor and overhead	11430

Units transferred out to next department = 1400 + 10600 - 1900 = 10100

BRAINERD CORPORATION
Cost of Production Report
Month Ended August 31, 2019
	QUANTITY SCHEDULE
(a)	Quantity to be accounted for
	Work in process—beginning	1400
	Started in production	10600
	Total to be accounted for		12000
(b)	Quantity accounted for
	Transferred out to next department	10100
	Work in process—ending	1900
	Total accounted for		12000
	COST SCHEDULE	TOTAL COST	E.P. UNITS	UNIT COST
(c)	Costs to be accounted for
	Costs in current department
	Work in process—beginning
	Materials	7560
	Labor	5100
	Overhead	2550
	Costs added during August
	Materials	40200		3.98
	Labor	20046		2.20
	Manufacturing overhead	13452		1.40
	Cumulative cost total	88908		7.58
(d)	Costs accounted for
	Transferred out to next department	76558
	Work in process—ending
	Materials	7562
	Labor	2926
	Manufacturing overhead	1862
	Rounding adjustment	0
	Total work in process-ending	12350
	Total costs accounted for	88908

Note: The computations are shown below. Kindly fill appropriately in the cells required in (c) since it is not clear from the format provided which cells need to be input as image of format is not provided. In case any clarifications are required, kindly mention the same under comments.

	Total Cost	E.P. Units	Unit Cost
Materials	47760	12000	3.98
Labor	25146	11430	2.20
Manufacturing overhead	16002	11430	1.40

Work in process inventory on Sep. 1: 1900 gallons

Total cost: $12350