Question

Exercise 16-7 The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,330 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 $36,981; labor $21,100; overhead $42,102.

Answer 1

Sanding Department
Production Cost Report
For the Month Ended March 31, 2017
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, March 1	0
Started into production	10330
Total units	10330
Units accounted for
Transferred out	7330	7330	7330
Work in process, March 31	3000	3000	600
Total units	10330	10330	7930
Costs		Materials	Conversion Costs	Total
Unit costs
Total costs		36981	63202	100183
Equivalent units		10330	7930
Unit costs		3.58	7.97	11.55
Costs to be accounted for
Work in process, March 1				0
Started into production				100183
Total costs				100183
Cost Reconciliation Schedule
Costs accounted for
Transferred out				84662	=7330*11.55
Work in process, March 31
Materials			10740		=3000*3.58
Conversion costs			4782	15522	=600*7.97
Total costs				100184