Do It! Review 16-4 In March, Kelly Company had the following unit production cos

Question

Do It! Review 16-4

In March, Kelly Company had the following unit production costs: materials $10 and conversion costs $8. On March 1, it had no work in process. During March, Kelly transferred out 28,500 units. As of March 31, 4,400 units that were 39% complete as to conversion costs and 100% complete as to materials were in ending work in process.

LINK TO TEXT

Materials

Conversion costs

LINK TO TEXT

Cost Reconciliation Schedule

Costs accounted for

   Transferred out

   Work in process, March 31

      Materials

      Conversion costs

Total costs

Do It! Review 16-4

In March, Kelly Company had the following unit production costs: materials $10 and conversion costs $8. On March 1, it had no work in process. During March, Kelly transferred out 28,500 units. As of March 31, 4,400 units that were 39% complete as to conversion costs and 100% complete as to materials were in ending work in process.

Explanation / Answer

a)Compute the total units to be accounted for. Total units to be accounted for = Units transferred during March + Ending WIP as on March 31 = 28,500 + 4,400 32,900 units b) Compute the equivalent units of production. Materials Conversion costs Units Transfered out 28500 28500 Work in process , March 31 Materials (4400 x 100%) 4400 Conversion (4400 x 39%) 1716 Equivalent units of production 32900 30,216 c) Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process. Cost Reconciliation Schedule Costs accounted for Transferred out (28500 x ($10 + $8) $513,000.00 Work in process, March 31 Materials (4400 units x $10) $44,000.00 Conversion costs (4400 units x $8) $35,200.00 $79,200.00 Total costs $592,200.00

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