Rosenthal Company manufactures bowling balls through two processes: Molding and

Question

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2017 are presented below.

Production Data

June

Cost Data

Production Data

June

Beginning work in process units 0 Units started into production 30,360 Ending work in process units 2,760 Percent complete—ending inventory 40 %

Explanation / Answer

Solution:

Computation of Equivalent unit of Production - Molding Department Particulars Physical Units Material Conversion Unit completed & Transferred out (30360-2760) 27600 27600 27600 Closing WIP: 2760 Material (100%) 2760 Conversion (40%) 1104 Equivalent units of production 30360 30360 28704

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