Question

Question 2

   Kasten Company manufactures bowling balls through two processes: moulding and packaging. In the moulding department, urethane, rubber, plastic, and other materials are moulded 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.

   Labour and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the moulding department during June 2020 are presented below:

Question 2 Kasten Company manufactures bowling balls through two processes: moulding and packaging. In the moulding department, urethane, rubber, plastic, and other materials are moulded 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. Labour and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the moulding department during June 2020 are presented below: Production Data June KASTEN COMPANY Beginning work in process units 0 Moulding Department Production Cost Report Units started into production 22,400 For the Month Ended June 30, 2020 Ending work in process units 2,000 Equivalent Units Percent complete-ending inventory 30% Quantities Physical Units Materials Conversion Costs Total Cost Data Units to be accounted for Materials $194,880 Work in process, June 1 Labour 60.070 Overhead 114,230 Started into production Total $369,180 Total units Prepare a schedule showing physical units of production. Units accounted for Transferred out Units to be accounted for Work in process, June 30 Total units Costs Unit costs Units accounted for Costs in June $ Equivalent units Unit costs $ Costs to be accounted for Work in process, June 1 S LINK TO TEXT LINK TO TEXT Started into production Determine the equivalent units of production for materials and conversion costs. Total costs Cost Reconciliation Schedule Costs accounted for Materials Conversion Costs Transferred out S Work in process, June 30 Materials s Conversion costs LINK TO TEXT LINK TO TEXT Total costs S Calculate the unit costs of production. (Round answer to 2 decimal places, e.g. 15.25.) Unit Costs Materials Conversion costs $ Total unit cost

Answer 1

									Physical Units	Material	Conversion	Total
Units to be accounted for				Units to be accounted for
Units of Beginning WIP	0			Units of Beginning WIP		0
Units started		22400			Units started		22400
Total Units to be accounted for	22400			Total Units to be accounted for	22400
Units accounted for:					Units accounted for:
Units completed and transferred out	20400			Units completed and transferred out	20400	20400	20400
Units of Ending WIP		2000			Units of Ending WIP		2000	2000	600
Total Units accounted for	22400			Total Units accounted for	22400	22400	21000
Equivalent units					Cost
			Material	Conversion	Unit Cost
Units completed and transferred out	20400	20400		Cost in June				194880	174300	369180
Units of Ending WIP		2000	600		Equivalent units			22400	21000
Total Equivalent units	22400	21000		Unit cost				8.7	8.3	17
Unit Cost						Cost to be accounted for:
			Unit Cost			Work in process June 01				0
Material cost		8.7			Started in the production				369180
Conversion cost		8.3			Total cost						369180
						Cost Reconciliation Statement
						Cost accounted for:
						Transferred out (20400*17)				346800
						Work in process June30
							Material		(2000*8.7)	17400
							Conversion cost	(600*8.30)	4980	22380
						Total cost						369180