Production Data June Beginning WIP units 0 Units Started into Production 22,000

Question

Production Data June

Beginning WIP units 0

Units Started into Production 22,000

Ending WIP 2,000

Percent Complete- ending inventory 40%

Cost Data

Materials 198,000

Labor 53,600

Overhead 112,800

Total 364,400

a) Prepare a schedule showing physical units of production

b) Determine the equivalent units of production for materials and conversion costs

c) Compute the unit costs of production

d) Determine the costs to be assigned to the units transferred and in process for june

e) Prepare a production cost report for the molding department for the month of June

Explanation / Answer

a) Units started           22,000 Units completed           20,000 WIP ending             2,000 Equivalent units in WIP =2000*40% 800 b) Equivalent units produced For material           22,000 For Conversion cost = 20000+800           20,800 Materials Conversion cost c) Cost incurred (a)         198,000       166,400 Equivalent units produced (b)           22,000        20,800 Cost per unit (a/b) 9 8 d) Cost of units transferred 20000 * (9+8)         340,000 Cost of WIP (2000*9)+(800*8) 24400 e) Direct materials         198,000 Direct labor           53,600 Prime Cost         251,600 Add: Overhead         112,800 Cost of production         364,400 Less: Work in process           24,400 Cost of goods sold         340,000

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