The Welding Department of Thorpe Company has the following production and manufa
ID: 2420556 • Letter: T
Question
The Welding Department of Thorpe Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process.
Manufacturing Costs
Production Data
Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.)
Manufacturing Costs
Production Data
Beginning work in process Beginning work in process 15,490 units, 1/10 complete Materials $18,130 Units transferred out 49,340 Conversion costs 15,100 $33,230 Units started 44,630 Materials 228,362 Ending work in process 10,780 units, 1/5 complete Labor 52,210 Overhead 71,729Explanation / Answer
Step1: Calculation of No of Units Produced during the February Month :
Particulars
Units
Beginning Work in Process
1549
Units transferred Out
49340
Ending work in Process
(2156)
48733
Note: For calculating production cost taken only no of units transferred out.
Step 2: Production Cost per Unit:
Particulars
Amount
Beginning Work in Process
Material
18130
Conversion Cost
15100
Material
228632
Labour
52210
Overhead
71729
385801
N of Units Produced
48733
Production Cost per Unit
7.92
Particulars
Units
Beginning Work in Process
1549
Units transferred Out
49340
Ending work in Process
(2156)
48733
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