Question

Sheridan Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. June Production Data Beginning work in process units Units started into production Ending work in process units Percent complete-ending inventory 28,160 2,560 40% Cost Data Materials Labor Overhead Total $253,440 68,608 144,384 $466,432

Production Cost Report

Answer 1

a
1
Physical units
Units to be accounted for
Work in process, June 1	0
Started into production	28160
Total units	28160
Units accounted for
Transferred out	25600
Work in process, June 30	2560
Total units	28160
2
	Materials	Conversion Costs
Total equivalent units	28160	26624
3
	Materials	Conversion Costs	Total Unit Cost
Unit costs	9.00	8.00	17.00
4
Transferred out	435200
Work in process, June 30	31232
b
Production Cost Report
For the Month Ended June 30, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, June 1	0
Started into production	28160
Total units	28160
Units accounted for
Transferred out	25600	25600	25600
Work in process, June 30	2560	2560	1024
Total units	28160	28160	26624
		Materials	Conversion Costs	Total
Unit costs:
Total costs		253440	212992	466432
Equivalent units		28160	26624
Unit costs		9.00	8.00	17.00
Costs to be accounted for
Work in process, June 1				0
Started into production				466432
Total costs				466432
Cost Reconciliation Schedule
Costs accounted for
Transferred out				435200	=25600*17
Work in process, June 30
Materials			23040		=2560*9
Conversion costs			8192	31232	=1024*8
Total costs				466432