The Sanding Department of Kayden Company has the following production and cost d

Question

The Sanding Department of Kayden Company has the following production and cost data for November.

Production                                                                  Costs                          

1. Started and completed 9,000 units.                        Beginning work in process     $    -0-

2. Started 3,000 units that are 75%                            Materials                                 56,250

     completed at November 30.                                   Labor                                       123,750

                                                                                    Manufacturing Overhead        45,000

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Kayden Company uses the FIFO method to compute equivalent units.

(a)        Determine the equivalent units of production for (1) materials and (2) conversion costs.

(b)        Compute unit costs and show the assignment of manufacturing costs to units transferred out and in work in process.

(c)        Repeat parts (a) and (b) above, if beginning work in process consists of 1,000 units valued at $10,325 ($4,800 are materials). The units are 40% complete as to conversion costs. Materials costs are unchanged, labor costs are $125,669 and manufacturing overhead costs are $49,000.

Note: Round all calculations to the nearest penny

Explanation / Answer

a and b) Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Total Opening WIP                           -   0%                           -                             -   0%                           -   Units started and completed              9,000.00 100%              9,000.00              9,000.00 100%              9,000.00 ending WIP              3,000.00 100%              3,000.00              3,000.00 75%              2,250.00 Equivalent Units            12,000.00            11,250.00 Current Month Costs            56,250.00         168,750.00                225,000.00 Cost per Equivalent units                      4.69                    15.00 Ending WIP Units              3,000.00              2,250.00 Cost of ending WIP            14,062.50            33,750.00                  47,812.50 Units transferred              9,000.00              9,000.00 Cost of units transferred            42,187.50         135,000.00                177,187.50 c) Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Total Opening WIP              1,000.00 100%              1,000.00              1,000.00 100%              1,000.00 Units started and completed              9,000.00 100%              9,000.00              9,000.00 100%              9,000.00 ending WIP              3,000.00 100%              3,000.00              3,000.00 75%              2,250.00 Equivalent Units            13,000.00            12,250.00 Opening WIP Costs              4,800.00              5,525.00                  10,325.00 Current Month Costs            56,250.00         174,669.00                230,919.00 Total Costs            61,050.00         180,194.00                241,244.00 Cost per Equivalent units                      4.70                    14.71 Ending WIP Units              3,000.00              2,250.00 Cost of ending WIP            14,088.46            33,096.86                  47,185.32 Units transferred            10,000.00            10,000.00 Cost of units transferred            46,961.54         147,097.14                194,058.68

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