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

Solution:

Below is the Cost reconciliation statement

Working 54964 ($0.84 +$2.18) * 18,200 units Cost reconcilation cost accounted for Transfered out work in process Material conversion cost Total cost accounted for 1764 2289 $0.84 * 2,100 Units 4053 $2.18 * 50% * 2,100 Units 59017

Working:

Cost per Equivalent Unit Material Conversion Cost 17,052 / 20,300 Units = 0.84 (22,965 +19,000) / 19,250 Units 2.18