Shamrock Industries uses process costing. All of the company\'s manufacturing ac

Question

Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department The following information was available for the month of June. Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June $ 90,000 30,000 40,000 $ 160,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June 20,000 units were completed, of which 16,000 were sold on account at $20 per unit. Complete a production cost report for Shamrock Industries for the month of June. (Do not round intermediate calculations.) SHAMROCK INDUSTRIES Production Cost Report Part I. Physical Flow Total Units Inputs: Beginning WIP Started Units to account for: Outputs Units completed Ending WIP Units accounted for Part II. Equivalent Units Direct Materials Conversion Costs Based on monthly input Beginning WIP

Explanation / Answer

PHYSICAL FLOW Beginning Work in Process units 0 Add: Units Started in Process 20,000 Total Units to account for: 20,000 UNITS TO BE ACCOUNTED FOR: Output Units completed 20,000 Ending Work in Process 0 Total Units to be accounted for: 20,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 0% 0 Units started and completed 100% 20,000 100% 20,000 Ending Work in Process 0% 0 0% 0 Total Equivalent units 20,000 20,000 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 90,000 70,000 Equivalent Units 20,000 20,000 Cost per Equivalent unit 4.5 3.5 TOTAL COST ACCOUNTED FOR: Units Completed and Transferred out (20,000 units) Equivalent unit Cost per EU Total Cost Material 20,000 4.5 90000 Conversion Cost 20,000 3.5 70000 Total Cost of Units completed and transferred out: 160000

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