a.) Determine teh equivalent units of porduction and teh unit production costs f
ID: 2362071 • Letter: A
Question
a.) Determine teh equivalent units of porduction and teh unit production costs for the Assembly Department.
b.) Determine the assignment of costs to goods transferred out and in process.
c.) Prepare a production sheet cost report for the Assembly Department.
All base off of the following information...
McNair Co has severyal psorcessing departments. Costs charged to teh Assembly Department for October 2011 totaled $1,249,500 as follows.
Work in process, October 1
Materials $29,000
Conversion costs 16,500
Materials added 1,006.00
Labor 90,000
Overhead 108,000
Production records show that 25,000 units were in beginning work in process 40% complete as to conversion cost, 425,000 unites were started into production and 35,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
**this is basically latin to me. I just made it through financial accounting and there is no way I can make it all the way through managerial on my own. HELP!
Explanation / Answer
a) Calculation of equivalent units: Units Material labor Overhead Trans.In Units completed 415,000 415,000 415,000 415,000 Equivalent units in ending WIP (40%convrsion) 35,000 14,000 14,000 35,000 __________ _________ __________ __________ Total 450,000 429,000 429,000 450,000 ____________ __________ _________ __________ Cost Material Labor Overhead Tans.In Total Work in process $29,000 16,500 16,500 $78,500 Materials added 1,006,000 90,000 108,000 ____________ __________ _________ Total 1,035,000 106,500 124,500 ____________ ____________ _________ Cost per equivalen unit $2.30 $0.24 $0.29 c) Production cost Report Unit Reconciliation Units in Beginning WIP (40% Complete to conversion) 25,000 Units started 425,000 ___________ Units to account for 450,000 ____________ Units completed* 415,000 Units in ending WIP(40%complete to conversion) 35,000 ___________ units accounted for 450,000 _____________ Cost Reconciliation: Total cost to account for $1,249,500 Cost of completed units transfered to Finished Goods(415,000*$2.79) $1,161,580 Cost of ending WIP Material(35,000*$2.30) $80,500 Labor(14,000*$0.24) 3,360 Overhead(14,000*$0.29) 4,060 _________ 87,920 _______________ Total cost accounted for $1,249,500Related Questions
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