information for the sandy manufacturing company for the month of July 2012 is as
ID: 2503414 • Letter: I
Question
information for the sandy manufacturing company for the month of July 2012 is as follows.
Beginning Work in Process: Cost of inventory at process, $5010
July 1
units= 800
direct materials= 100% complete
conversion cost= 70% complete
units started in july=14,000 cost charged to work in process in
July:
Ending work in process inventory: direct materials cost= $57,400
units=1,500 direct labor cost= 20,049
Direct materials= 100% complete factory overhead cost= 30, 073
conversion cost= 30% complete
Prepare a Cost of Production report for July.
If required, round your cost per equivalent unit amounts to two decimal places. Round all other amounts tp the nearest dollar. If an amount is zero then enter "0".
Explanation / Answer
Calculation of Equivalent Unit (as per FIFO Method) Unit Direct Material Conversion Cost % of Completion Equivalent Unit % of Completion Equivalent Unit Beginning WIP 800 0% 0 30% 240 Unit Started & Completed 12500 100% 12500 100% 12500 Closing WIP 1500 100% 1500 30% 450 Total Equivalent Unit 14000 13190 Calculation of Cost per Equivalent Unit Total Equivalent Unit Cost per Equivalent Unit Direct Material 57400 14000 $ 4.10 Conversion Cost 50122 13190 $ 3.80 Calculation of total Cost Cost of Unit Transferred Cost of Beginning WIP $ 5,010.00 Add: Materail Cost Added $ 51,250.00 Add: Conversion Cost Added $ 48,412.00 Total Cost transferred out $ 104,672.00 Cost of Ending WIP Material Cost $ 6,150.00 Conversion Cost $ 1,710.00 Cost of Ending WIP $ 7,860.00
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