Question

Problem 16-6A (Part Level Submission) Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product—an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking department is as follows. (a) Your answer is correct. Prepare a schedule that shows how the equivalent units were computed so that you can complete the “Quantities: Units accounted for” equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) HAMILTON PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for    Work in process, October 1    (all materials, 70% conversion costs) 21,800    Started into production 163,500       Total units 185,300 Units accounted for    Transferred out 130,800    Work in process, October 31    (60% materials, 40% conversion costs) 54,500       Total units accounted for 185,300 Costs Materials Conversion Costs Total Unit costs    Total Costs $261,600 $114,450 $376,050    Equivalent units    Unit costs $ $ $ Costs to be accounted for    Work in process, October 1 $32,700    Started into production 343,350       Total costs $376,050 Click if you would like to Show Work for this question: Open Show Work

(b)

Complete the “Cost Reconciliation Schedule” part of the production cost report below.

Cost Reconciliation Schedule
Costs accounted for
Transferred out		$
Work in process, October 31
Materials	$
Conversion costs
Total costs		$

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Answer 1

		Production Cost Report
		Equivalent Units
	Physical		Conversion
Quantities	Units	Materials	Costs
Units to be
accounted for
WIP, Oct 1	21800
Started into	163500
production
Total Units	185300
Units accounted
for
Transferred Out	130800	130800	130800
WIP, Oct 31	54500	32700	21800
Total Units	185300	163500	152600

		Conversion
Costs	Materials	Costs	Total
Unit Costs
Total Costs	$ 261,600.00	$ 114,450.00
Equivalent Units	163500	152600
Unit Costs	$             1.60	$             0.75	$              2.35
Costs to be
accounted for
WIP, Oct 1			$    32,700.00
Started into			$ 343,350.00
production
Total			$ 376,050.00
Costs accounted
for
Transferred Out	(W.N.1)		$ 307,380.00
WIP, Oct 31	(W.N. 2)
Materials		$   52,320.00
Conversion		$   16,350.00	$    68,670.00
Total			$ 376,050.00

W.N.1
Cost of units transferred out
	Units	Cost/unit	Costs
Materials	130800	$      1.60	$ 209,280.00
Conversion	130800	$      0.75	$    98,100.00
			$ 307,380.00

W.N.2
Cost of Closing WIP
	Units	Cost/unit	Costs
Materials	32700	$      1.60	$    52,320.00
Conversion	21800	$      0.75	$    16,350.00
			$    68,670.00