Question

E16-13) The Welding Department of Healthy Company has the following production and Prepare anafacturing cost data for February 2017. All materials are added at the beginning of (LO 3,4 the process. Manufacturing Costs Beginning work in process Materials $18,000 Conversion costs 14,175 $ 32,175 Materials 180,000 Labor 67,380 Overhead 61,445 Production Data Beginning work in process 15,000 units 1/10 complete Units transferred out 55,000 Units started 51,000 Ending work in process 11,000 units 1/5 complete Instructions Prepare a production cost report for the Welding Department for the month of February

Answer 1

Production report Physical units Equivalent Unit Material Conversion cost Units to be accounted for :- Beginning work in process Started into Production Total Units Accounted for 15000 51000 66000 Units to be accounted for:- Transferred to next Department Ending work in Process Total Units Accounted for 55000 11000 66000 55000 11000 66000 55000 2200 57200 conversion cost = (11000 x 1/5) Ending work in Process = Material = (11000 x 100%) All material is added in beginning so 100% material is already added to ending WIP. Cost Per Equivalent Unit Material Conversion | Total cost $ Cost To be accounted For:- Beginning work in process Cost added during month Total Cost 18,000 $ 180,000 $ 198,000 $ 14,175 $ 128,825 $ 143,000 $ 32,175 308,825 341,000 Equivalent Units Cost per unit (B) (A)/(B) 66000 3.00 57200 2.50 $ $ $ 5.50 Cost Reconcilliation Schedule Total cost $ 302,500 Cost accounted for :- Transferred out (550000 units * $5.50) Ending work in process :- Material (11000 units * $3.00) Conversion (2200 units * $ 2.50) Total Ending Work in Process Total Cost $ $ 33,000 5,500 $ $ 38,500 341,000