Question

Exercise 9 - Your Co. uses process costing to account for production costs. Direct labor is added evenly throughout the process and direct materials is added at the beginning of the process. During June, the assembly department transferred 210 units to finished goods. Beginning WIP inventory was 20 units with $100 direct materials and $200 direct labor. Ending WIP inventory consists of 40 units that are 60% complete with respect to labor. $1000 direct materials were incurred in June and $2140 direct labor costs were also incurred. Overhead is applied at 200% of direct labor cost. Complete the process cost summary below given this information. Process Cost Summary Equivalent Units of Production (EUP) Direct Materials 210.0 Direct Labor 210.0 Manufacturing Overhead 210.0 40.0 Units completed and transferred out Units of Ending Work in Process: DM DL MO Equivalent units of production (EUP) 24.0 24.0 234.0 250.0 234.0 Costs Per Equivalent Unit Direct Materials Direct Labor Manufacturing Overhead $100 $200 $400 Costs: Cost of beginning work in process Costs added to production during period Total costs $1,000 $1,100 $2,140 $2,340 $4,280 $4,680 250.0 234.0 Equivalent units of production (EUP) Cost per EUP (round 2 decimals*) 234.0 $20.00 $4.40 $10.00
Need Help with Cost Reconciliation

Answer 1

Statement Showing Cost Reconciliation: Cost Reconciliation Particulars Amount($) Cost to be accounted for Beginning WIP $ 700 =100+200+400 Cost added $ 7,420 =1000+2140+4280 Total Cost to be accounted for $ 8,120 Cost accounted as Cost of unit transferred out $ 7,224 =924+2100+4200 Cost of ending WIP $ 896 = 176+240+480 Total Cost accounted as $ 8,120 Kindly Comment down for any clarifications/ queries and please upvote.