Question

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The sanding department of Hanninen Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 11,150 units finished and transferred out; 3,480 units started that are 100% complete in terms of materials and 25% complete in terms of conversion costs, Manufacturing costs: materials $49,742; labour $41,400; overhead $36,730. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 15.25.) HANNINEN FURNITURE COMPANY Sanding Department Production Cost Report For the Month Ended March 31, 2020 Equivalent Units Physical Conversion Quantities Units Materials Costs Units to be accounted for Total Work in process, March 1 Started into production Total units Units accounted for Transferred out Work in process, March 31 Total units Costs Unit costs Costs in March 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 Transferred aut Work in process, March 31 Materials Conversion costs Total costs

Answer 1

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1 Answer Hannien Furniture Company Sanding Department Production Cost Report 4 For the Month Ended March 31, 2020 Equivalent Units Total Physical Units Material Conversion Cost 7 Quantities Units to be accounted For 8 Work in Process, March 1 0 Started into Production 10 14630 Total Units 11 14630 12 Units accounted for Transferred out 13 11150 11150 11150 Work in Process, March 31 (3480 25 %= 870) 14 3480 3480 870 Total Units 12020 15 14630 14630 16 Costs 17 Unit costs 49,742 $ 78,130 S 127,872 Cost in March 18 Equivalent Units Unit costs 19 14630 12020 6,5 S 3.4 S 20 9.9 21 Costs to be accounted for Work in process March 1 22 0 Started into production $ 127,872 S 127,872 23 Total costs 24 25 Cost Reconciliation Schduele 26 Costs accounted for Transferred out (11150 9.9) S 110,385 27 Work in process, March 31 Material (3480 3.4) Conversion Costs (870 6.5) 28 29 11,832 5,655 $ 30 17,487 Total costs 127,872 31