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ID: 2331939 • Letter: P

Question

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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

Prepare a schedule showing physical units of production.

Units to be accounted for

   Work in process, June 1

   Started into production

      Total units

Units accounted for

   Transferred out

   Work in process, June 30

      Total units

eTextbook and Media

Determine the equivalent units of production for materials and conversion costs.

Materials

Conversion Costs

eTextbook and Media

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

Materials

Conversion Costs

Total Unit Cost

$

$

$

eTextbook and Media

Determine the costs to be assigned to the units transferred and in process for June.

$

$

eTextbook and Media

Prepare a production cost report for the Molding Department for the month of June.

ROSENTHAL COMPANY
Molding Department
Production Cost Report
For the Month Ended June 30, 2017

Equivalent Units

Quantities

Physical
Units


Materials

Conversion
Costs

Units to be accounted for

   Work in process, June 1

   Started into production

      Total units

Units accounted for

   Transferred out

   Work in process, June 30

      Total units


Costs


Materials

Conversion
Costs


Total

Unit costs

   Total Costs

$

$

$

   Equivalent units

   Unit costs

$

$

$

Costs to be accounted for

   Work in process, June 1

$

   Started into production

      Total costs

$

Cost Reconciliation Schedule

Costs accounted for

   Transferred out

$

   Work in process, June 30

      Materials

$

      Conversion costs

   Total costs

$

eTextbook and Media

Production Data

June

Beginning work in process units 0 Units started into production 29,700 Ending work in process units 2,700 Percent complete—ending inventory 40 %

Explanation / Answer

Answer:

1

Prepare a schedule showing physical units of production

Physical units

Units to be accounted for

   Work in process, June 1

0

   Started into production

29700

      Total units

29700

Units accounted for

   Transferred out

27000

   Work in process, June 30

2700

      Total units

29700

2

Determine the equivalent units of production for materials and conversion costs.

Materials

Conversion Costs

Total equivalent units

29700

28080

3

Compute the unit costs of production.

Materials

Conversion Costs

Total Unit Cost

Unit Costs

9

8

17

4

Determine the costs to be assigned to the units transferred and in process for June.

Transferred out

459000

Work in process, June 30

32940

5

ROSENTHAL COMPANY

Molding Department

Production Cost Report

For the Month Ended June 30, 2017

Equivalent Units

Quantities

Physical

Conversion

Units

Materials

Costs

Units to be accounted for

   Work in process, June 1

0

   Started into production

29700

      Total units

29700

Units accounted for

   Transferred out

27000

27000

27000

   Work in process, June 30

2700

2700

1080

      Total units

29700

29700

28080

Conversion

Costs

Materials

Costs

Total

Unit costs

   Total Costs

267300

224640

491940

   Equivalent units

29700

28080

   Unit costs

9

8

17

Costs to be accounted for

   Work in process, June 1

0

   Started into production

491940

      Total costs

491940

Cost Reconciliation Schedule

Costs accounted for

   Transferred out (27000*17)

459000

   Work in process, June 30

      Materials (2700*9)

24300

      Conversion costs(1080*8)

8640

32940

   Total costs

491940

Physical units

Units to be accounted for

   Work in process, June 1

0

   Started into production

29700

      Total units

29700

Units accounted for

   Transferred out

27000

   Work in process, June 30

2700

      Total units

29700

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