Question

Sunland Company has the following production data for March: no beginning work in process, units started and completed 32,000, and ending work in process 3,200 units that are 100% complete for materials and 40% complete for conversion costs. Sunland uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $13. The total costs to be assigned are $573,440, prepare the cost section of the production cost report for Sunland Company using the FIFO approach.

SUNLAND COMPANY (Partial) Production Cost Report For the Month Ended March 31
COSTS
		Materials		Conversion Costs		Total
Unit costs
Total costs		$enter a dollar amount		$enter a dollar amount		$enter a total amount for this row
Equivalent units		enter a number of units		enter a number of units
Unit costs		$enter a dollar amount		$enter a dollar amount		$enter a total amount for this row
Costs to be accounted for
In process, March 1						$enter a dollar amount
Started into production						enter a dollar amount
Total costs						$enter a total of the two previous amounts
Costs accounted for
Transferred out
In process, March 1						$enter a dollar amount
Started and completed						enter a dollar amount
In process, March 31
Materials				$enter a dollar amount
Conversion costs				enter a dollar amount		enter a subtotal of the two previous amounts
Total costs

Answer 1

Ans.

	Materials	Conversion Costs	Total
Unit Cost
Total Cost	$ 140,800.00	$ 432,640.00	$ 573,440.00
Equivalent unit	35,200.00	33,280.00
Unit cost	$             4.00	$          13.00	$          17.00
Cost to be accounted for
In process, March 1			$                -
Started into production			$ 573,440.00
Total Cost			$ 573,440.00
Cost accounted for
Transferred Out
In process, March 1			$                -
Started and completed			$ 544,000.00
In process March 31
Materials		$   12,800.00
Conversion cost		$   16,640.00	$   29,440.00
Total Costs			$ 573,440.00

Working Notes:

Equivalent units (materials)

Units started and completed 32,000

WIP materials (3,200 x 100%) 3,200

Total units accounted for 35,200

Equivalent units (conversion)

Units started and completed 32,000

WIP materials (3,200 x 40%) 1,280

Total units accounted for 33,280

Cost Incurred during March:

35, 200 x 4 = 140,800

33,280 x 13 = 432,640

Total cost 573,440

Cost assigned to units transferred out

32,000 x (4 + 13) = 544,000‬

Cost of WIP

3,200 x 4 = 12.800‬

1,280 x 13 = 16,640‬

Total 29,440