The Sanding Department of Quik Furniture Company has the following production an

Question

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation.

Production: 7,410 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.

Manufacturing costs: Materials $35,498; labor $21,000; overhead $39,155.

Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)

QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2017

Equivalent Units

Quantities

Physical
Units

Materials

Conversion
Costs

Costs

Materials

Conversion
Costs

Total

Cost Reconciliation Schedule

QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2017

Equivalent Units

Quantities

Physical
Units

Materials

Conversion
Costs

Units to be accounted for    Work in process, March 1

   Started into production

      Total units

Units accounted for    Transferred out

   Work in process, March 31

      Total units

Costs

Materials

Conversion
Costs

Total

Unit costs    Total Costs $

$

$

   Equivalent units

   Unit costs $

$

$

Costs to be accounted for    Work in process, March 1 $

   Started into production

      Total costs $

Cost Reconciliation Schedule

Costs accounted for    Transferred out $

   Work in process, March 31       Materials $

      Conversion costs

   Total costs $

Explanation / Answer

PARTICULARS PHYSICAL UNIT MATERIALS CONVERSION COST TOTAL UNITS TO BE ACCOUNTED FOR - Work in process, March 1 0 0 0 0 - Started into production 0 0    0 0 Total units 0 0 0 0 Units accounted for   Transferred out 7410 units 7410 units 7410 units - Work in process, March 31 3000 units 3000 units =3000 X 20%= 600 units -   Total units 10410 10410 8010 COSTS Total Costs (A) $35498 =$(21000 +39155) = $ 60155 $95653 Equivalent units (B) 10410 units 8010 units - UNIT COST ( A / B) $ 3.41 $ 7.51 $ 10.92 Costs to be accounted for -Work in process, March 1 0 0 0 - Started into production (7410 X 10.92)= $80917.20 TOTAL COST $ 80917.20 Cost Reconciliation Schedule Costs accounted for - Transferred out (7410 X 10.92) = $ 80917.20 Work in process, March 31 - Materials (3000 X 3.41) =$ 10230.00 -    $ 10230.00 - Conversion costs (600 X 7.51) = $ 4506.00   $ 4506.00 TOTAL COST $ 95,653.20

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