Question

P21-6A

956 21 Process Costing Iastructions 54590 (2) The unit costs of production for materials and conversion costs $1,980 $2.10 (a) Calculate the following. a)(2) Materials (3) The assignment of costs to units transferred out and in process at the end (b) Prepare a production cost report for the month of July for the basketballs, (1) The equivalent unlts of production for materials and conversion costs WIP ting period Compute equhalent unitsP21-6A Hamilton Processing Company uses a weighted-average process cost and compicte prdfaction cost manufactures a single produci-an industrial carpet shampoo and cleaner used LO 3, 4) system and for the month of October has just been pleted. A partially completed production cost report for the month of October Mixing and Cooking Department is shown below. HAMILTON PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Physical Units Conversion Costs Materials Quantitles Units to be accounted for Work in process, Otober I Pu Ma Ma Ou (all materials, 70% conversion costs) Started into production 20,000 150,000 170,000 Total units Units accounted for Transferred out Th 120,000 Wark in process, October 31 (60% materials, 40% conversion costs) 50,000 Total units accounted for 170.000 Costs Unit costs ConversionTotal Materials Costs Total cost Equivalent units Unit costs Work in process, October 1 $240000 $105,000 $345.80 Costs to be accounted for $ 30,000 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, October 31 Conversion costs Total costs lnstructions (a) Ma erials (a) Prepare a schedule that shows how the equivalent units were comapsiction S1.50 5282,000 $ 63,000 (b) Complete the "Cost Reconciliation Schedule part of the production cost can complete the "Quantities: Units accounted for" equivalent units the production cost report, and compute October unit costs. WP section shown it

Answer 1

PART-1)

	Physical Units	Equivalent Units-material	Equivalent Units-Conversion Cost
Units to be accounted for
WIP, Oct 1 (All Mat 70% Conv Cost)	20,000
Started Into Production Total Units	150,000
Total Units	170,000
Units accounted for
Transferred Out	120,000	120,000	120,000
WIP, Oct 31 (60% Mat, 40% Conv Cost)	50,000	30,000	20,000
Total Units accounted for	170,000	150,000	140,000
Costs
Unit Costs		Material	Conversion Cost	Total
Total Cost		240,000	105,000	345,000
Equivalent Units		150,000	140,000
Unit Costs		1.60	0.75	2.35
Costs to be accounted for
Work in Progress October-1				30,000
Started Into Production				315,000
Total Costs				345,000

PART-2)

Cost Reconciliation Schedule
Costs accounted for
Transferred out		282,000
Work in process, October 31
Materials	48,000
Conversion Costs	15,000	63,000
Total Costs		345,000