Question

Problem 3-3 Kennel Tiles is a specialized producer of ceramic tiles. Its production process involves highly skilled workers and top-quality ceramic crafters. Work in Process is relatively large because each tile is in process for up to 3 weeks because of art, mold work, and drying time. October began with 5,000 units (a unit is one ceramic tile) in process, on average 70 percent complete as to direct materials and 30 percent complete as to conversion costs; 5,970 units were started during the month, and ending Work in Process inventory consisted of 6,940 units that were on average 90 percent complete as to direct materials and 60 percent complete as to conversion costs. Cost Information Direct material Direct labor Manufacturing overhead Beginning Work in Process $183,300 168,000 47,100 Costs Added in October $515,468 1,159,428 100,392 Your answer is partially correct. Try again. Prepare a production cost report for the month of October. Kennel Tiles, Inc-October Unit Reconciliation TUnits in beginning work in process 5000 Units started during October 5970 Units to account for 10970 T Units completed 4030 T Units in ending work in process 6940 Units accounted for 10970 Cost per Equivalent Unit Calculation CO9160G X W NOG EPP

Answer 1

According to the requirement of the question, we have to prepare production cost report and journal entry to recognize the transfer of units, but of these answers are absolutely correct.

So, Now we have to work on Cost Reconciliation.

Cost Reconciliation

Total Cost to accounts for (Working Note)

$2,173,688

Cost of Completed Units (4,030 * $248)	$999,440
Cost of Ending WIP
Materials $424,728
Labor $674,568
Manufacturing Overhead $ 74,952	$1,174,248
Total Cost accounted for (Cost of completed units +Cost of Ending WIP)	$2,173,688

Working Note:- Calculation of Total cost

= Direct materials of Beginning Work in Process and Cost added in October + Direct Labor of Beginning Work in Process and Cost added in October + Manufacturing Overhead of Beginning Work in Process and Cost added in October

= $183,300 + $515,468 + $168,000 + $1,159,428 + $47,100 + $100,392

= $2,173,688

Thank you.

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