Question

Brief Exercise 16-09 Production costs chargeable to the Finishing Department in June in Crane Company are materials $17,052, labor $22,965, overhead $19,000. Equivalent units of production are materials 20,300 and conversion costs 19,250. Production records indicate that 18,200 units were transferred out, and 2,100 units in ending work in process were 50% complete as to conversion costs and 100% complete as to materials. Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 125.) Cost Reconciliation Cost accounted for Transferred out $ Work in process Materials $ Conversion costs Total cost accounted for Click if you would like to Show Work for this question: Open Show Work

Answer 1

Cost reconciliation
Costs accounted for:	Calculations	Amount
Transferred out	18200 units * $3.02	$54,964
Work in process
Material	2100 units * $0.84	$1,764
Conversion Costs	2100 units * 50% * $2.18	$2,289
Total Costs accounted for		$59,017

Working:

Particulars	Calculations	Amount
Material cost per unit ($16,800 / 21000 units)	$17,052 / 20300 units	$0.84
Conversion cost per unit [($41748 + $18900) / 19950 units]	($22,965+$19,000)/19250 units	$2.18
Total		$3.02