Question

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Molton Company had 300 units of product in work in process inventory at the beginning of the period. It started 1,500 units during the period and transferred 1,200 units to finished goods inventory. The ending work in process inventory was estimated to be 70 percent complete. Cost data for the period follow: Product Costs $28,200 150,000 $178,200 Beginning balance Added during period Total Required Prepare a cost of production report showing the following: a. The number of equivalent units of production. b. The product cost per equivalent unit. e. The total cost allocated between ending work in process inventory and finished goods inventory

Answer 1

Cost of Production Report for Molton Company
Equivalent Units (a.)
Quantities:	Actual		Equivalent Units
Beginning work in process inventory	300
Started into production	1500
Total to be accounted for	1800
		% complete
Transferred to finished goods inventory	1200	100	1200
Ending work in process inventory	600	70	420
Total accounted for	1800		1620
Cost per Unit (b.)
Cost Accumulation
Beginning balance	28200
Added during period	150000
Total to be accounted for	178200
Equivalent units	1620
Cost per unit		=	110
Cost Allocation (c.)
Transferred to finished goods inventory			132000
Ending work in process inventory			46200
Total allocated cost			178200