Question

Exercise 21-7 The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 6,230 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $36,735; labor $21,400; overhead $30,235 Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.) QUIK FURNITURE COMPANY Production Cost Renort For the Month Ended March 31, 2017 Equivalent Units Conversion Physical Units Quantities Materials Costs Units to be accounted for Work in process, March Started into production Total units Units accounted for Transferred out Work in process, March 31 Total units Conversion Materials Total Costs Costs Unit costs Total Costs Equivalent units Unit costs Costs to be accounted for Work in process, March 1 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferr out Work in process, March 31 Materials Conversion costs Total costs

Answer 1

Production Cost Report
For the Month Ended March 31, 2017
		Equivalent Units
Quantities	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, March 1	0
Started into production	9230
Total units	9230
Units accounted for
Transferred out	6230	6230	6230
Work in process, March 31	3000	3000	600
Total units	9230	9230	6830
Costs		Materials	Conversion Costs	Total
Unit costs:
Total Cost		36735	51635	88370
Equivalent units		9230	6830
Unit costs		3.98	7.56	11.54
Costs to be accounted for
Work in process, March 1				0
Started into production				88370
Total costs				88370
Cost Reconciliation Schedule
Costs accounted for
Transferred out				71894	=6230*11.54
Work in process, March 30
Materials			11940		=3000*3.98
Conversion costs			4536	16476	=600*7.56
Total costs				88370