Question

The Welding Department of Healthy Company has the following production and manufac Manufacturing Costs Production Data Beginning work in process 15,200 units, 5.20 1/10 complete Beginning work in process Units transferred out Materials $18,300 55,100 Conversion costs 15,160 $33,460 Units started 50,900 Materials 226,270 Ending work 210 in process 67,100 11,000 units, 1/5 complete Labor Overhead 49,530 Prepare a production cost report for the Welding Department for the month of February HEALTHY MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2020 Equivalent Units Physical Conversion Quantities Units Materials Costs Units to be accounted for Work in process, February 1 Started into production 106000 15200 Total units 376360 Units accounted for Transferred out Work in process, February 28 Total units Conversion Costs Costs Unit costs 10 Total Costs Equivalent units Unit costs Costs to be accounted for Work in process, February 1 Started into production

Answer 1

Answer:

HEALTHY MANUFACTURING COMPANY
Welding Department
Production Cost Report
For the month ended February 28,2020
		Equivalent units
Quantities	Physical Units	Materials	Conversion Costs
Units to be accounted for:
Work in process, February 1	15,200
Started into production	50,900
Total units	66,100
Units accounted for:
Transferred out	55,100	55,100	55,100
Work in process, February 28	11,000	11,000*	2,200**
Total units	66,100	66,100	57,300
Costs		Materials	Conversion Costs	Total
Unit costs
Total costs***		$244,570	$131,790	$376,360
÷ Equivalent units		66,100	57,300
= Unit costs		$3.70	$2.30	$6.00
Costs to be accounted for:
Work in process, February 1				$33,460
Started into production				$342,900
Total costs				$376,360
Cost reconciliation Schedule
Cost s accounted for:
Transferred out				$330,600
Work in process, February 28
Materials				$40,700
conversion costs				$5,060
Total costs				$376,360

Explanations:

*Assumed that direct materials are introduced beginning of the production. Hence equivalent units for ending materials is 100% complete.

** For conversion, Equivalent units for ending work in process = Ending work-in process units x % of completion

= 11,000 x 1/5

= 2,200

*** Total costs:

	Materials	Conversion
Beginning Work-in process	$18,300	$15,160
Started into production	$226,270
(67,100 labor + 49,530 overhead)		$116,630
Total costs	$244,570	$131,790