Question

need this solved please

1. 2. The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs Transferred out 13,700 units. Beginning work in process $0 Started 3,500 units that are 60% Materials 70,004 complete as to conversion Labor 18,322 costs and 100% complete as Manufacturing overhead 22,600 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 VIDEO APPLIED SKILLS Compute unit costs. (Round unit costs to 2 decimal places, 0.9. 2.25.) Materials Conversion costs LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEO: APPLIED SKILLS 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. 1,225.) Cost Reconciliation Costs accounted for Transferred out Work in process, July 31 $ Materials Conversion costs Total costs

Answer 1

Answer

Equivalent units of production

Given,

Transferred (completed) units of production = 13,700 units

An equivalent unit of production is a term applied to the work-in-process inventory at the end of an accounting period. Basically the partially completed units are expressed in terms of fully completed units.

Materials

It’s given that work in progress is 100% complete as per materials.

So, equivalent units of production = 13,700 + (3,500 * 100%)

                                                  =13,700 + 3,500 units

   = 17,200 units

Conversion cost

It’s given that work in progress is 60% complete as to conversion cost.

So, equivalent units of production = 13,700 + (3,500 * 60%)

                                                     =13,700 + 2,100 units

   = 15,800 units

Unit cost

Materials

Unit material cost = Material cost / equivalent units of production

= $70,004 / 17,200

= $4.07 per unit

Conversion cost

Conversion cost = labour cost + Manufacturing overheads

                  = $18,322 + $22,600

                     = $40,922

Unit Conversion cost = Conversion cost / equivalent units of production

= $40,922 / 15,800

= $2.59 per unit

Cost Reconciliation Schedule

Particulars	Amount	Amount
Costs accounted for
Transferred out ($4.07 * 13,700) + ($2.59 * 13,700)		$91,242
Work in progress, July 31
Materials ($4.07 * 3,500)	$14,245
Conversion cost ($2.59 * 2,100)	$5,439	$19,684
Total cost		$110,926