Exercise 3-13 The Welding Department of Healthy Company has the following produc

Question

Exercise 3-13 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 Production Data Manufacturing Costs 14,500 units, 1/10 complete 55,000 50,700 10,200 units, 1/5 complete Beginning work in process Units transferred out Beginning work in process Materials $17,500 14,560 $32,060 Units started Conversion costs Materials Labor Overhead Ending work in pracess 192,444 67,000 67,885 to 2 decimal places, eo. 2.25 and all other answers Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to O decimal places, e.g. 1,225.) HEALTHY MANUFACTURING COMPANY Production Cost Report For the Month Ended February 28, 2017 Equivalent Units Physical Units Conversion Costs Materials Quantities Units to be accounted for Work in process, February 1 Started into production

Explanation / Answer

HEALTHY MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2017 1) Equivalent Units Quantities Physical Units Materials Conversion Cost Units to be accounted for: Work in process, February 1 14500 Started into production 50700 Total Units 65200 Units accounted for: Transferred out 55000 55000 55000 Work in Process, February 28 10200 10200 2040 Total Units 65200 65200 57040 Working; Equivalent Units Physical Units Materials Conversion Cost % of completion EUP % of completion EUP Transferred out 55000 100% 55000 100% 55000 Work in Process, February 28 10200 100% 10200 20% 2040 Total Units 65200 65200 57040 *** EUP stands for Equivalent units of Production 2) Materials Conversion Costs Total Unit Cost: Total Costs $       2,09,944 $       1,49,445 $ 3,59,389 Equivalent Units 65200 57040 Unit cost $               3.22 $               2.62 3) Cosst to be accounted for: Work in Process,February 1               32,060 Started into Production           3,27,329 Total Costs           3,59,389 Cost Reconcilation Schedule: Transferred out $       3,21,200 Work in process, February 28 Materials $           32,844 Conversion Cost $             5,345 $           38,189 Total Costs $       3,59,389 Working: Costs of units transferred out: EUP Cost per EUP Total Cost Total Materials 55000 $       3.22 $ 1,77,100.00 Conversion 55000 $       2.62 $ 1,44,100.19 $       3,21,200 Costs of Ending Work in Process; Materials 10200 $       3.22 $     32,844.00 Conversion 2040 $       2.62 $       5,344.81 $           38,189 Total $       3,59,389

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