Question

Question 2 The welding department of Balogh Manufacturing Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Manufacturing Costs Beginning work in process Materials Production Data Beginning work in process $18,360 14,020 Conversion costs $32,380 167,490 52,100 57,850 Materials 15,000 units 1/10 complete 48,500 44,000 10,500 units 1/5 complete Units transferred out Units started Ending work in process Labour Overhead Prepare a production cost report for the welding department for the month of February. (Round unit costs to 2 decimal places, e.g. 15.25.) DALACUVANEACTURINCOVANIV

Answer 1

Prepare production cost report as follows: Balogh manufacturing company Welding department Production cost report For the month ended February 29,2020 | Equivalent units Physical Conversion Quantities Materials units costs Units to be accounted for Work in progress, February 1 | 15000 Started into production 44000 Total units Units accounted for Transferred out 48500 100% 48500 100% 48500 Work in progress February 29 10500 100% 10500 20% 2100 Total units 59000 59000 50600 59000 Compute total costs as follows: A B D C Conversion costs Costs Materials Total $309,820 | $185,850 59000 $3.15 $123,970 50600 $2.45 | $5.60 2 Unit costs 3 Costs in February 4 Equivalent units 5 Unit costs 6 Cost to be accounted for 7 Work in progress February 1 8 Started into production 9 Total costs $32,380 $277,440 $309,820

Prepare the above-mentioned table with excel formulae as follows: B c D Costs Materials Conversion costs Total =18360+167490 =14020+52100+57850 -C3+B3 59000 50600 =B3/B4 =C3/C4 =B5+C5 2 Unit costs 3 Costs in February 4 Equivalent units 5 Unit costs 6 Cost to be accounted for 7 Work in progress February 1 8 Started into production 9 Total costs 32380 =D9-D7 =D3 Prepare a cost reconciliation schedule as follows: Cost reconciliation schedule Cost accounted for Transferred out(48500x5.60) $271,600 Work in progress, February 29 Materials(10500x3.15) $33,075 Conversion costs(2100x2.45) $5,145 $38.220 Total costs $309,820