Shamrock Industries uses process costing. All of the company\'s manufacturing ac

Question

Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following information was available for the month of June

The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 13,250 units were completed, of which 10,000 were sold on account at $25 per unit.

Use this information to complete a production cost report for Shamrock Industries for the month of June. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round Costs per equivalent units to 2 decimal places and other final answers to the nearest dollar amount. Omit the sign "$" in your response.)

Direct materials $ 89,750 Direct labor 28,975 Manufacturing overhead applied 40,275 Total costs to account for in June $ 159,000

Explanation / Answer

Shamrock Industries
                Product Cost Report
               For the month of June


Part I. Physical Flow              Total Units
Inputs:
Beginning WIP                                  0
Started                                     13,250
Units to account for:                 13,250

Outputs:
Units completed                      13,250
Ending WIP                                     0
Units accounted for:                13,250
_______________________________________
Part II. Equivalent Units         Direct    Conversion
                                           Materials        Costs
Based on monthly input:
Beginning WIP                               0                0
Units started                            13,250      13,250
Equivalent units of input           13,250      13,250

Based on monthly output:
Units completed                     13,250      13,250
Ending WIP                                   0               0
Equivalent units of output        13,250      13,250
____________________________________________

Part III. Cost Per Equ.Unit   Total Unit      DM     Conv.
                                              Cost           Cost    Cost
Input costs                                              $89,750 $69,250
Divide by equivalent units                         13,250    13,250
Costs per equivalent unit         $12           $6.77      $5.23
_____________________________________________

Part IV. Total Cost Assignment   Total Costs DM    Conv
                                                                      Cost    Cost
Costs to account for:
Cost of beginning WIP                            0         0           0
Cost added during the period     $159,000   $89,750 $69,250
Total cost to account for            $159,000   $89,750  $69,250

Costs accounted for:
Cost of goods transferred
Beginning WIP last period                     0             0               0
Beginning WIP this period                     0             0               0
Started and completed               $159,000      $89,750   $69,250
Total cost transferred                $159,000       $89,750   $69,250
Add ending WIP                                   0                 0               0
Total cost accounted for            $159,000       $89,750   $69,250
___________________________________________________

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