(14.2A) Compute equivalent production; compute costs per equivalent unit; prepar

Question

(14.2A) Compute equivalent production; compute costs per equivalent unit; prepare a cost of production report. (Objs. 2,3,4). Roosevelt Company uses a process cost accounting system. Materials in the first department (Crushing) are placed in production at various in tervals of the manufacturing process. Data for the month of March follow: Costs Beginning Work in Process Costs in Prior Department Costs in Current Department Materials $6,509 2,106 3,283 Labor Overhead Current Department Costs-March Materials Labor Overhead 124,022 104,638 63,466 Quantities 1,200 Beginning Work in Process Started in Production Transferred Out to Next Department Ending Work in Process 18,100 17,750 1,550 Beginning Materials and overhead Labor 80% 30% Ending Materials and overhead Labor 90% 40%

Explanation / Answer

1 &2) Equivalent units, cost per unit and cost of transferred out and ending WIP:

Production report: Phy units Material Labor overhead Total Beg WIP (A) 1200 240 (20%) 840 (70%) 240 (20%) started & comple 16550 16550 16550 16550 Transf. out 17750 End WIP(a) 1550 1395 (90%) 620 (40%) 1395 (90%) Equiva. Units 18185 18010 18185 cost incurred during March 124022 104638 63466 Cost per Eq unit (b) 6.82 5.81 3.49 Cost of Trans out: Beg WIP 6509 2106 3283 B wip in march (A*b) 1637 4880 838 total WIP 8146 6986 4121 started & comple 112871 96155 57760 total cost of Tranf out 121017 103142 61880 286039 Cost of End WIP(a*b) 9514 3602 4869 17985

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