Question

Amange Split AN Switch Windows Properties Reset Window Position Window Macros - Macros SharePoint 90,000 90,000 Accounts Receivable Work In Process - Packaging Cost of Goods Sold Finished goods Inventory 62,000 62,000 P17-2B Steiner Corporation manufactures water skis through two processes Moing and Packaging In the Molding Department, fiberglass is heated and shaped into the form of a ski in the Packaging Department, the skis are placed in cartons and sent to the finished goods warehouse Materials are entered at the beginning of both processes. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department for January 2017 are presented below Production Dar Beginning work in process units Units started into production Ending work in process units Percent complete - ending inventory January 0 50,000 2,500 40% OT Cost Data January Materials $510,000 Labor 92,500 Overhead 150,000 Total $752.500 Instructions (a) Compute the physical units of production (b) Determine the equivalent units of production for materials and conversion costs (c) Compute the unit costs of production (d) Determine the costs to be assigned to the units transferred out and in process le) Prepare a production cost report for the Molding Department for the month of January PROBLEM 17-2B ... (Working Papers) (a) Physical Units: Units to be accounted for: Total Units Units accounted for Total Units b) Equivalent Units:

Answer 1

(a)	Physical Units:
	Units to be accounted for:
	Beginning work in process units	0
	Units started into production	50000
	Total Units	50000
	Units accounted for:
	Units transferred out	47500
	Ending work in process units	2500
	Total Units	50000
(b)	Equivalent Units:
		Materials	Conversion Costs
	Units transferred out	47500	47500
	Work in Process, Jan 31
	Materials (2500 x 100%)	2500
	Conversion costs (2500 x 40%)		1000
	Total Equivalent Units	50000	48500
(c)		Unit Costs
	Materials ($510000/50000)	10.20
	Conversion costs ($92500 + $150000)/48500	5.00
	Total Unit Cost	15.20
(d)	Costs accounted for:
	Units transferred out (47500 x $15.20)		722000
	Work in Process, Jan 31
	Materials (2500 x $10.20)	25500
	Conversion costs (1000 x $5.00)	5000	30500
	Total costs		752500

(e)	STEINER CORPORATION
	Molding Department
	Production Cost Report
	For the Month Ended January 31, 2017
			Equivalent Units
	Quantities	Physical Units	Materials	Conversion Costs
	Units to be accounted for:
	Work in process, Jan 1	0
	Units started into production	50000
	Total units	50000
	Units accounted for:
	Transferred out	47500	47500	47500
	Work in process, Jan 31	2500	2500	1000
	Total units	50000	50000	48500
			Equivalent Units
	Costs	Physical Units	Materials	Conversion Costs	Total
	Unit costs:
	Total costs	(a)	510000	242500	752500
	Equivalent units	(b)	50000	48500
	Unit costs (a)/(b)		10.20	5.00	15.20
	Costs to be accounted for:
	Work in process, Jan 1				0
	Costs added in Jan				752500
	Total costs				752500
	Cost Reconciliation Schedule
	Costs to be accounted for:
	Transferred out				722000
	Work in process, Jan 31
	Materials			25500
	Conversion costs			5000	30500
	Total costs				752500