Question

--.. Explain to him why his pro ng inventory Write an informal memo. Be kirld ending inventory. Write an Instructions rimentof Healthy Company has the folloving produrct nming of the p uring cost data for February 2017.All materials are added at the beginninuction and Production Data t of Healthy Company has the following of the procs E21-13 The Welding Departmen Manufacturing Costs 15,000 unit 1/10 complee Beginning work in process Beginning work in process Materials Conversion costs 14,175 32,175 Units transferred out 180,000 $18,000 55,000 51.00 11,000 units 1/5 complete Units started Materials Labor Ending work in process 67,380 61,445 Overhead Instructions Prepare a production cost report for the Welding Department for the month of Februan

Answer 1

Total costs accounted for
Costs of beginning goods in process	84300
Costs incurred this period	1006800
Total costs to account for:	1091100
Total costs accounted for	1091100
Difference due to rounding cost/unit	0
Units to account for:
Beginning goods in process inventory ­ units	15000
Units started this period	51000
Total units to account for	66000
Total units accounted for:
Units completed and transferred out	55000
Ending goods in process ­ units	11000
Total units accounted for	66000
Equivalent units of production (EUP)­ weighted average method
	Units	% Materials	EUP­ Materials	% Conversion	Conversion
Units completed and transferred out	55000	100.00%	55000	100.00%	55000
Ending goods in process ­ units	11000	100.00%	11000	20%	2200
Total Units	66000		66000		57200
Cost Per Equivalent unit of Production			Direct Material		Conversion
Costs of beginning goods in process			18000		14175
Costs incurred this period			180000		128825
Total Costs		Costs	198000	Costs	143000
Equivalent Unit of Production			66000		57200
Cost Per Equivalent unit of Production			3.00		2.50
Total costs accounted for
Cost of Units Transferred out	EUP	Cost Per EUP	Total Cost
Direct Material	55000	3.00	1,65,000.00
Conversion	55000	2.50	1,37,500.00
Total Cost Transferred out			3,02,500.00
Cost of Ending Work in Progress	EUP	Cost Per EUP	Total Cost
Direct Material	11000	3.00	33,000.00
Conversion	2200	2.50	5,500.00
Total Cost of Ending Work in Progress			38,500.00
Total Cost accounted for				341000
Cost Reconciliation Schedule
Costs of beginning goods in process	32175
Costs incurred this period	308825
Total Cost accounted for	341000
Total Cost Transferred out	3,02,500.00
Total Cost of Ending Work in Progress	38,500.00
Total Cost accounted for	3,41,000.00