Question

Production costs chargeable to the Finishing Department in June in Bramble Company are materials $14,626, labor $41,450, overhead $19,000. Equivalent units of production are materials 20,600 and conversion costs 19,500. Production records indicate that 18,400 units were transferred out, and 2,200 units in ending work in process were 50% complete as to conversion costs and 100% complete as to materials. Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to O decimal places, e.g. 125.) Cost Reconciliation Cost accounted for Transferred out Work in process Materials Conversion costs Total cost accounted for

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

1 Answer 2. 75,076 3.81 3 Firstly we have to calculate the cost per equivalent Unit 4 5 Particulars Material Conversion Cost Total Cost 6 Cost for the period $ 14,626 $ 60,450 $ 7 Equivalent Units 20600 19500 8 Cost Per equivalent Unit $ 0.71 $ 3.10 $ 9 10 11 12 Thus the final Answer 13 Cost Reconciliation 14 Cost accounted for 15 Transferred Out (18400*3.81) 70,104 16 Work in process 17 Material (.71*2200) $ 1,562 18 Conversion Cost (3.1*2200*50%) 3,410 $ 4,972 Total cost accounted for 75,076 19