Question

E16-13 The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process. Manufacturing Costs Beginning work in process Materials $18,000 Conversion costs 14.175 $ 32,175 Materials 180,000 Labor 67,380 Overhea! 61,445 Production Data Beginning work in process 15,000 units 1/10 complete Units transferred out 55,000 Units started 51,000 Ending work in process 11,000 units 1/5 complete instructions Prepare a production cost report for the Welding Department for the month of February E16-14 Remington Inc. is contemplating the use of process costing to track the costs of its operations. The operation consists of three segments (departments): Receiving, Shipping, and Delivery, Containers are received at Remington's docks and sorted according to the ship they will be carried on. The containers are loaded onto a ship, which carries them to the appropriate port of destination. The containers are then off-loaded and delivered to the Receiving Department. Remington wants to begin using process costing in the Shipping Department. Direct materials represent the fuel costs to run the ship, and "Containers in transit" represents work in process. Listed below is information about the Shipping Department's first month's activity. Containers in transit, April 1 0 Containers loaded 1,200 Containers in transit, April 30 350, 40% of direct materials and 20% of conversion costs Instructions (a) Determine the physical flow of containers for the month. (b) Calculate the equivalent units for direct materials and conversion costs E16-15 Santana Mortgage Company uses a process cost system to accumulate costs in its Application Department. When an application is completed, it is forwarded to the Loan Department for final processing. The following processing and cost data pertain to September 1. Applications in process on Beginning WIP: September 1: 100. Direct materials $ 1.000 2. Applications started in Conversion costs 3,960 September: 1,000. September costs: 3. Completed applications during Direct materials $ 4,500 September: 800. Direct labor 4. Anplication all 120

Answer 1

Product cost report

Units to accounted for
Beginning work in process	15000
Unit started	51000
Total units to accounted for	66000
Units accounted as	Whole Unit	EUP-Direct material	EUP-Conversion
Unit transferred out	55000	55000	55000
Ending WIP	11000	11000	11000/5 = 2200
Total units accounted as	66000	66000	57200
Cost per equivalent unit
		Direct material	Conversion	Total
Beginning WIP		18000	14175	32175
Cost added		180000	128825	308825
Total Cost		198000	143000	341000
Equivalent unit		66000	57200
Cost per equivalent unit		3	2.50	5.50
Cost assignment and reconciliation
	EUP	Cost per EUP	Total Cost
Cost of unit transferred out
Direct material	55000	3	165000
Conversion	55000	2.5	137500
Total cost of unit transferred out				302500
Cost of ending WIP
Direct material	11000	3	33000
Conversion	2200	2.5	5500
Total Cost of ending WIP				38500
Total Cost accounted as				341000