Rosenthal Company manufactures bowling balls through two processes: Molding and
ID: 2337656 • Letter: R
Question
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.
Beginning work in process units 0,Units started into production 24,420 Ending work in process units 2,220 Percent complete—ending inventory 40% Materials $ 219,780 Labor 59,496 Overhead $ 125,208 Total $ 404,484 Prepare a schedule showing physical units of production. Units to be accounted for Work in process, June 1 0 Started into production 24, 420 Total units 24,420 Units accounted for Transferred out ? Work in process, June 30 2,220 Total units ?
Explanation / Answer
Units
Reconciliation of Units
A
Opening WIP
-
B
Introduced
24,420
C=A+B
TOTAL
24,420
D
Transferred
22,200
E=C-D
Closing WIP
2,220
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
22,200
100%
22,200
100%
22,200
Closing WIP
2,220
100%
2,220
40%
888
Total
24,420
Total
24,420
Total
23,088
Materials are added at the beginning of the process hence are 100% complete
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Cost incurred during period
$ 219,780.00
$ 184,704.00
$ 404,484.00
Total Cost to be accounted for
$ 219,780.00
$ 184,704.00
$ 404,484.00
Total Equivalent Units
24,420
23,088
Cost per Equivalent Units
$ 9.0
$ 8.00
Statement of cost
Cost
Equivalent Cost/unit
Ending WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 9.00
2,220
$ 19,980.00
22,200
$ 199,800.00
Conversion Cost
$ 8.00
888
$ 7,104.00
22,200
$ 177,600.00
TOTAL
$ 404,484.00
TOTAL
$ 27,084.00
TOTAL
$ 377,400.00
Cost to be accounted for
Cost incurred during period:
Material
$ 219,780.00
Conversion Cost
$ 184,704.00
$ 404,484.00
Total Cost to be accounted for
$ 404,484.00
Cost accounted for
Cost of Units transferred
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
22,200
$ 9.00
$ 199,800.00
Conversion Cost
22,200
$ 8.00
$ 177,600.00
$ 377,400.00
Cost of ending WIP
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
2,220
$ 9.00
$ 19,980.00
Conversion Cost
888
$ 8.00
$ 7,104.00
$ 27,084.00
Total Cost accounted for
$ 404,484.00
Note
Units
Reconciliation of Units
A
Opening WIP
-
B
Introduced
24,420
C=A+B
TOTAL
24,420
D
Transferred
22,200
E=C-D
Closing WIP
2,220
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