Question

Question 3 Hi-Tech Mortgage Company uses department for final processing. The following processing and cost data pertain to September: process costing system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan 1. Applications in process on Beginning work in process: September 1, 80 Direct materials $1,160 Applications started in Conversion costs 2. 3,880 September, 1,180 September costs: 3. Completed applications during $7,660 Direct materials September, 820 Direct labour 11,050 11,086 4. Applications still in process at September 30 were Overhead 100% complete in terms of materials (forms) and 60% complete in terms of conversion costs. Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.

Answer 1

Welding Department
Production Cost Report
For the Month Ended February 29, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, February 1	80
Started into production	1180
Total units	1260
Units accounted for
Transferred out	820	820	820
Work in process, February 29	440	440	264
Total units	1260	1260	1084
		Materials	Conversion Costs	Total
Unit costs:
Costs in February		8820	26016	34836
Equivalent units		1260	1084
Unit costs		7.00	24.00	31.00
Costs to be accounted for
Work in process, February 1				5040
Started into production				29796
Total costs				34836
Cost Reconciliation Schedule
Costs accounted for
Transferred out				25420	=820*31
Work in process, February 29
Materials			3080		=440*7
Conversion costs			6336	9416	=264*24
Total costs				34836