Question

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded 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. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June 0 Beginning work in process units Units started into production Ending work in process units Percent complete-ending inventory 25,740 2,340 40 % Cost Data Materials Labor Overhead $231,660 62,712 131,976 $426,348 Total

Answer 1

Physical units Units to be accounted for Work in process, June 1 Started into production Total units 0 25740 25740 Units accounted for Transferred out Work in process, June 30 Total units 23400 2340 25740 Materials Conversion costs 25,740 24,336 Total Equivalent units Materials $ Conversion costs Total unit cost 9 $ 8 $ 17 Unit costs Transferred out Work in process, June 30 $ $ 397,800 28,548 Working Note:

E A B C D 1 Molding Department 2 Production Cost Report 3 For the Month Ended June 30, 2020 4 Equivalent Units 5 Quantities Physical units Materials Conversion costs 6 Units to be accounted for 7 Work in process, June 1 0 8 Started into production 25740 9 Total units 25740 10 11 Units accounted for 12 Transferred out 23400 23400 23400 13 Work in process, June 30 2340 2340 936 14 Total units 25740 25740 24336

15 Materials Conversion costs Total $ 231,660$ 25740 $ 9$ 194,688 $ 426,348 24336 8 $ 17 16 Costs 17 Unit costs 18 Total Costs 19 Equivalent units 20 Unit costs 21 22 Costs to be accounted for 23 Work in process, June 1 24 Started into production 25 Total costs 26 27 Cost Reconciliation Schedule 28 Costs accounted for 29 Transferred out 30 Work in process, June 30 31 Materials 32 Conversion costs 33 Total costs $ $ 426,348 $426,348 $ 397,800 $ $ 21,060 7,488 $ 28,548 $426,348

A с D E 1 2 B Molding Department Production Cost Report For the Month Ended June 30, 2020 Equivalent Units Physical units Materials Conversion costs 3 4 5 Quantities 6 Units to be accounted for Work in process, June 1 Started into production 9 Total units 7 0 8 25740 =+B7+B8 10 =+B14-B13 2340 =+B12*100% =+B12*100% =+B13*100% =+B13*40% =+C12+C13 =+D12+D13 =+B9 11 Units accounted for 12 Transferred out 13 Work in process, June 30 14 Total units 15 16 Costs 17 Unit costs 18 Total Costs 19 Equivalent units 20 Unit costs Materials Conversion costs Total =+C18+D18 231660 =62712+131976 =+C14 =+D14 =+C18/C19=+D18/019 =+C20+D20

0 426348 =+E23+E24 21 22 Costs to be accounted for 23 Work in process, June 1 24 Started into production 25 Total costs 26 27 Cost Reconciliation Schedule 28 Costs accounted for 29 Transferred out 30 Work in process, June 30 31 Materials 32 Conversion costs 33 Total costs =+B12*E20 =+C13*C20 =+D13*D20 =+D31+D32 =+E29+E32