Question

The Cutting Department of Cassel Company has the following production and cost data for July 2 Production Costs 1 Transferred out 12,700 units. Beginning work in process $0 Started 3,600 units that are 60% Materials 63,570 complete as to conversion Labor 8,406 costs and 100% complete as Manufacturing overhead 22,800 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production LINK TO TEXT LINK TO TEXT VIDEO SIMILAR EXERCISE Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials $ Converunt Version 4.4.2001 of Pohn W.Yn Inc.

Answer 1

Determination of equivalent units of production for material and conversion cost

Purticulars	Materials	Conversion costs
Units transferred out	12700 units	12700 units
3600 *100% 3600*60%	3600 units	2160
Total equivalent units	16300 units	14860 units

Computation of unit cost

Material                          63570/16300 units                   =    $ 3.9

Conversion cost            ($8406+$22800)/14860 units =    $ 2.1

Cost reconciliation schedule

Costs accounted:

Transferred out          (12700 units *($ 3.9+$2.1) 76200

Work in process:

Materials                      (3600 units*$ 3.9)                   14040

Conversion costs         (2160 units* $ 2.1)                  4536 18576

Total costs                                                                                $94776