Question

Exercise 3-10 (Part Level Submission) Overton Company has gathered the following information. 20,700 236,800 25,500 Units in beginning work in process Units started into production Units in ending work in process Percent complete in ending work in process: Conversion costs Materials Costs incurred: Direct materials Direct labor Overhead 60 % 100 % $ 103,000 $530,170 $187,000 (a) Your answer is correct. Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs The equivalent units of production 257500 247300

Answer 1

	Material	Conversion cost
A) Equivalent units	257,500	247,300
B) Unit cost of production	0.40	2.90
C) Cost to be assigned to units transferred = 765600
C) Cost to be assigned to units in process = 54570
	Overton Company
	Production Cost Report
	For the month ended July 31
		Actual Units
	Caluclation of Physical UNITS:
	Units in begining inventory	20700
	Units started during the period	236800
	Units to be accounted for	257500
		Actual Units	Equivalent Units
			Material	Conversion cost
	Units Completed and Transferred	232000	232000	232000
	Units in ending inventory	25500	25500	15300
Working to answer 1	Equivalent Units	257500	257500	247300
	Costs:
		Total	Material	CC
	Costs in beginning inventory	0	0	0
	Cost added dueing the year	820170	103000	717170
	Total cost to account for	820170	103000	717170
	Equivalent Units from above		257500	247300
Working to answer 2	Cost per equivalnet unit	3.30	0.40	2.90
		Total	Material	CC
	Cost Accounted for
Working to answer 3	Units completed and transfer	765,600	92,800	672,800
Working to answer 3	Units in ending inventory	54,570	10,200	44,370
	Total Cost Accounted for	820,170	103,000	717,170