Exercise 16-13 The Welding Department of Healthy Company has the following produ
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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 61,445Explanation / 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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