Zou Compnay manufactures bowling balls through two processes: Molding and Packag
ID: 2357607 • Letter: Z
Question
Zou Compnay 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 2012 are presented below. Production Data June Beginning work in process units 0 Units started into production 20,000 Ending work in process units 2,000 Percent complete- ending inventory 60% Cost Data June Materials 198,000 Labor 50,400 Overhead 112,800 Total 361,200 Instructions A. Prepare a schedule showing physical units of production B. Determine the equivalent units of production for materials and conversion costsExplanation / Answer
June
Beginning work in process units -0-
Units started into production 20,000
Ending work in process units 2,000
Percent complete-ending inventory 60%
Cost Data
Materials $198,000
Labor 50,400
Overhead 112,800
Total $361,200
Work in process, June 1 -0-
Started into production 20000
Total units 20000
Units accounted for
Transferred out 18,000 units.
Work in process, June 30 2000
Total units ????
= 20,000 units were started and only 2,000 remained in Ending inventory, they must have transferred out 18,000 units.
Units to account for
20,000. T/O 18,000 + EB 2,000 = 20,000
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