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Exercise 16-13 The Welding Department of Healthy Company has the following produ

ID: 2341389 • Letter: E

Question

Exercise 16-13 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 Production Data Beginning process transferred 55,000 Beginning work in process i 15,000 units, 1/10 complete Units out Conersion14,175 $32,175 Units started 51,000 costs Materials Labor Overhead Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.) 180,000 n process Ending work11.000 units, 1/5 complete 67,380 61,445

Explanation / Answer

Answer

Production Cost report

Quantities

Physical units

Direct Materials

Conversion Cost

Units to be accounted for:

WIP Feb 1

     15,000

Started into production

     51,000

Total Units to account for

     66,000

Units accounted for:

Transferred out

     55,000

                55,000

55000

WIP Feb 28

     11,000

                11,000

2200 [11000 x 1/5]

Total units

     66,000

                       -  

                66,000

                   57,200

COSTS

Material

Conversion costs

Total

Unit Costs:

Total Costs

$ 198,000.00

$     143,000.00

$       341,000.00

Equivalent Units

             66,000

                57,200

Unit Costs

$               3.00

$                  2.50

$                    5.50

Cost to be accounted for:

WIP Feb 1

$32,175

Started into production

$308,825

Total Costs

               -  

                       -  

                          -  

$341,000

COST RECONCILIATION SCHEDULE

Costs accounted for:

Transferred out

[55000 x $5.50]

$       302,500.00

WIP, Feb 28

   Material

[11000 x $3]

$       33,000.00

   Conversion cost

[2200 x $2.5]

$         5,500.00

$          38,500.00

Total Costs

$       341,000.00

Production Cost report

Quantities

Physical units

Direct Materials

Conversion Cost

Units to be accounted for:

WIP Feb 1

     15,000

Started into production

     51,000

Total Units to account for

     66,000

Units accounted for:

Transferred out

     55,000

                55,000

55000

WIP Feb 28

     11,000

                11,000

2200 [11000 x 1/5]

Total units

     66,000

                       -  

                66,000

                   57,200

COSTS

Material

Conversion costs

Total

Unit Costs:

Total Costs

$ 198,000.00

$     143,000.00

$       341,000.00

Equivalent Units

             66,000

                57,200

Unit Costs

$               3.00

$                  2.50

$                    5.50

Cost to be accounted for:

WIP Feb 1

$32,175

Started into production

$308,825

Total Costs

               -  

                       -  

                          -  

$341,000

COST RECONCILIATION SCHEDULE

Costs accounted for:

Transferred out

[55000 x $5.50]

$       302,500.00

WIP, Feb 28

   Material

[11000 x $3]

$       33,000.00

   Conversion cost

[2200 x $2.5]

$         5,500.00

$          38,500.00

Total Costs

$       341,000.00

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