Question 33 Montreal Manufacturing Inc. has the following cost and production da

Question

Question 33 Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning WIP Started in production Completed production Ending WIP 16,700 units 105,000 92,500 29,200 g of process. The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of process Costs pertaining to the month of April are as follows: Beginning inventory costs are: Materials Direct labour Factory overhead $64,400 18,300 15,300 Costs incurred during April include: Materials Direct labour Factory overhead $603,750 194,600 384,484

Explanation / Answer

STATEMENT OF EQUIVALENT PRODUCTION Material Direct Labour & Overheads Input Particulars Output % Unit % Unit[%*output] 16700 Opening Wip 16700 0 40% 6680 105000 Put & Processed[92500-16700] 75800 100% 75800 100% 75800 Closing Wip 29200 100% 29200 40% 11680 NO OF UNITS 121700 105000 94160 STATEMENT OF COST/EQUIVALENT UNIT Material Direct Labour & Overheads Cost incurred During the month $603,750 579084 [194600+384484] Equivalent Units 105000 uits 94160 units Cost/Equivalent unit 5.75 6.15 STATEMENT SHOWING TOTAL COST Items Element of Cost Equivalent Units Rate Amount Total Amt Op. WIP Material 0 Labour & Overhead 6680 6.15 41082 41082 Units introduced & produced MaterialLabour & Overhead 75800 11.9 902020 902020 Cl. WIP Material 29200 5.75 167900 Labour & Overhead 11680 6.15 71832 239743.9

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