Question

The Cutting Department of Cassel Company has the following production and cost data for July 1. 2. Production Transferred out 13,000 units. Started 4,300 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31 Costs Beginning work in process Materials Labor Manufacturing overhead $0 70,065 17,829 21.900 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 Compute unit costs. (Round unit costs to 2 decimal places, eg. 225.) Materials $ Conversion costs $ Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, es. 2.25 and final answers to o decimal places, eg. 1,225.) Cost Reconciliation Costs accounted for Transferred out Work in process, July 31 Materials $ Conversion costs Total costs

Answer 1

	Total units	Materials	Conversion Costs
Units transferred out	13,000	13,000	13,000
Add: Ending work in process (4,300*60/100)	4,300	4,300	2,580
Total Equivalent units of production		17,300	15,580
	Materials	Conversion Costs
Total costs to account ($17,829 + $21,900) (a)	$70,065	$39,729
Total equivalent units of production (b)	17,300	15,580
Unit cost for equivalent units (a/b)	$4.05	$2.55
Cost Reconciliation
Costs accounted for -
Tranferred out (see note)		$85,800
Work in process, July 31
Materials (4,300 * $4.05)	$17,415
Conversion costs (2,580 * $2.55)	$6,579	$23,994
Total Costs		$109,794
Notes:
Transferred out -
Materials (13,000 * $4.05)	$52,650
Conversion costs (13,000 * $2.55)	$33,150
Total costs of Transferred out	$85,800