Exercise 21-6 The Cutting Department of Cassel Company has the following product

Question

Exercise 21-6 The Cutting Department of Cassel Company has the following production and cost data for July.

Production

1. Transferred out 14,100 units.

2. Started 4,400 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31.

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Costs

Beginning work in process $0

Materials 64,195

Labor 17,663

Manufacturing overhead 19,500

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Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

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

Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

Materials: $ ?

Conversion costs: $ ?

Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

Materials Conversion Costs Total equivalent units of production ? ?

Explanation / Answer

Answer-

a Determining the equivalent units of production for (1) materials and (2) conversion costs Particulars Materials Conversion Costs Units transferred out                14,100                14,100 Work in process, July 31    4,400 x 100%                   4,400    4,400 x 60%                  2,640       Total equivalent units                18,500                16,740

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