Question

Practice Exercise 02 The Sanding Department of Sheffield Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,020 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $29,315; labor $20,600; overhead $31,367. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to o decimal places, e.g. 125.)

Answer 1

Sheffield Furniture Company
Sanding Department
Production Cost Report
For the Month ended March 31, 2020
					Equivalent Units
Quantities	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, March 1	0
Started into production	9,020
Total units			9,020
Units accounted for
Transferred out		6,020	6,020	6,020
Work in process, March 31	3,000	3,000	600	*3000 x 20%
Total units			9,020	9,020	6,620
Costs			Materials	Conversion Costs	Total
Unit costs
Total cost(a)		$29,315	$51,967	$81,282
Equivalent units (b)		9,020	6,620
Unit costs (a) ÷ (b)		$3.25	$7.85	$11.10
Costs to be accounted for
Work in process, March 1			$81,282
Started into production			0
Total costs					$81,282
Cost Reconciliation Schedule
Cost accounted for
Transferred out				$66,822
Work in Process, March 31
Materials			$9,750
Conversion costs			4,710	14,460
Total costs					$81,282