16-6 Exercise 16-6 The Cutting Department of Cassel Company has the following pr
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Question
16-6
Exercise 16-6 The Cutting Department of Cassel Company has the following production and cost data for July Production Costs Transferred out 12,000 units. Started 3,000 units that Beginning work in process 1. s0 2. Materials 45,000 16,200 18,300 are 60% complete as to Labor costs and 100% complete as to materials at July 31. Manufacturing Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production LINK TO TEXT LINK TO TEXT Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion costs LINK TO TEXT LINK TO TEXT Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Cost Reconciliation Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs Click if you would like to Show Work for this question: howExplanation / Answer
Answers
Material
Conversion Cost
Equivalent units of production
15000
13800
Unit Cost
Material
$ 3.00
Conversion cost
$ 2.50
Cost Reconciliation
Cost accounted for
Transferred out
$66,000
Work in progress July 31
Material
$9,000
Conversion
$4,500
$13,500
Total Cost
$79,500
Working
Units
Reconciliation of Units
A
Opening WIP
0
B
Introduced
15,000
C=A+B
TOTAL
15,000
D
Transferred
12,000
E=C-D
Closing WIP
3,000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
12,000
100%
12,000
100%
12,000
Closing WIP
3,000
100%
3,000
60%
1,800
Total
15,000
Total
15,000
Total
13,800
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Cost incurred during period
$ 45,000.00
$ 34,500.00
$ 79,500.00
Total Cost to be accounted for
$ 45,000.00
$ 34,500.00
$ 79,500.00
Total Equivalent Units
15,000
13,800
Cost per Equivalent Units
$ 3.00
$ 2.50
Statement of cost
Cost
Equivalent Cost/unit
Ending WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 3.00
3,000
$ 9,000
12,000
$ 36,000
Conversion Cost
$ 2.50
1,800
$ 4,500
12,000
$ 30,000
TOTAL
$ 13,500
TOTAL
$ 66,000
Reconciliation
Cost to be accounted for
Cost incurred during period:
Material
$ 45,000.00
Conversion Cost
$ 34,500.00
$ 79,500.00
Total Cost to be accounted for
$ 79,500.00
Cost accounted for
Cost of Units transferred
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
12,000
$ 3.00
$ 36,000.00
Conversion Cost
12,000
$ 2.50
$ 30,000.00
$ 66,000.00
Cost of ending WIP
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
3,000
$ 3.00
$ 9,000.00
Conversion Cost
1,800
$ 2.50
$ 4,500.00
$ 13,500.00
Total Cost accounted for
$ 79,500.00
Material
Conversion Cost
Equivalent units of production
15000
13800
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