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Question 31 Montreal Manufacturing Inc. has the following cost and production da

ID: 2342830 • Letter: Q

Question

Question 31 Montreal Manufacturing Inc. has the following cost and production data for the month of April Beginning WIP Started in production Completed production Ending WIP 17,000 units 102,600 92,200 27,400 The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of the process Costs pertaining to the month of April are as follows Beginning inventory costs are Materials Direct labour Factory overhead $65,000 21,100 16,900 Costs incurred during April include Materials Direct labour Factory overhead $533,520 194,400 381,952

Explanation / Answer

Answers

Units Reconciliation

Units to account for:

Beginning WIP

                                17,000

Units started this period

                              102,600

Total Units to account for

                              119,600

Total Units accounted for:

Completed & Transferred out

                                92,200

Ending WIP

                                27,400

Total Units accounted for

                              119,600

EUP - FIFO Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units of ENDING WIP

                                27,400

100%

                   27,400

40%

                             10,960

Units STARTED & COMPLETED

                                75,200

100%

                   75,200

100%

                             75,200

Units of beginning WIP

                                17,000

0%

                            -  

40%

                                6,800

Equivalent Units of Production

                 102,600 units = Answer for Material

                             92,960 units = Answer for conversion cost

COST per EUP

Material

Conversion

Cost incurred this period

$       533,520.00

$                  576,352.00

Total Costs

Costs

$       533,520.00

Costs

$                  576,352.00

Equivalent units of production

EUP

                 102,600

EUP

                             92,960

Cost per EUP

$             5.200

$                        6.200

---Working

Cost Transferred out:

EUP

Cost per EUP

Total Cost

Cost of Beginning WIP

$       103,000.00

Cost to complete beginning WIP-

- Direct Materials

                                          -  

$                   5.20

$                         -  

- Conversion

                                   6,800

$                   6.20

$          42,160.00

Total cost to complete beginning WIP

$       145,160.00

Cost of Units started & completed this period:

EUP

Cost per EUP

Total Cost

- Direct Materials

                                75,200

$                   5.20

$       391,040.00

- Conversion

                                75,200

$                   6.20

$       466,240.00

Total costs started & Completed this period

$       857,280.00

Total cost of work finished this period

$   1,002,440.00

Costs of Ending WIP:

EUP

Cost per EUP

Total Cost

- Direct Materials

                                27,400

$                   5.20

$       142,480.00

- Conversion

                                10,960

$                   6.20

$          67,952.00

Total cost of ending WIP

$      210,432.00

Total costs accounted for

$   1,212,872.00

--Answer, as asked

TOTAL

Materials

Conversion

Beginning Inventory

$                     103,000.00

$        65,000.00

$          38,000.00

Completed Beginning WIP

$                       42,160.00

$          42,160.00

Started & Completed

$                     857,280.00

$      391,040.00

$       466,240.00

Cost for units transferred out

$                 1,002,440.00

$      456,040.00

$       546,400.00

Ending Work in Process

$                     210,432.00

$      142,480.00

$          67,952.00

Total Costs

$                 1,212,872.00

$      598,520.00

$      614,352.00

Units Reconciliation

Units to account for:

Beginning WIP

                                17,000

Units started this period

                              102,600

Total Units to account for

                              119,600

Total Units accounted for:

Completed & Transferred out

                                92,200

Ending WIP

                                27,400

Total Units accounted for

                              119,600

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