Exercise 16-13 The Welding Department of Healthy Company has the following produ

Question

Exercise 16-13

The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process.

Manufacturing Costs

Production Data

Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.)

HEALTHY MANUFACTURING COMPANY
Welding Department
Production Cost Report
For the Month Ended February 28, 2017

Equivalent Units

Quantities

Physical
Units

Materials

Conversion
Costs

Costs

Materials

Conversion
Costs

Total

Cost Reconciliation Schedule

Manufacturing Costs

Production Data

Beginning work in process Beginning work in process 15,000 units, 1/10 complete     Materials $18,400 Units transferred out 54,600     Conversion costs 14,660 $33,060 Units started 51,500 Materials 252,920 Ending work in process 11,900 units, 1/5 complete Labor 67,200 Overhead 88,510

Explanation / Answer

Prepare production cost report :

Physical unit Material Conversion cost Units to be accounted for Work in process, February 1 15000 Started into production 51500 Total units 66500 Units accounted for Transferred out 54600 54600 54600 Work in process, February 28 11900 11900 2380 Total units 66500 66500 56980 COSTS Material Conversion Cost Total Total cost 271320 170370 441690 Equivalent unit 66500 56980 Unit cost 4.08 2.99 7.07 Costs to be accounted for Work in process, February 1 33060 Started into production 408630 Total Cost 441690 Cost Reconciliation Schedule Cost accounted for Transferred out 386022 Work in process, Feb 28 Material 48552 Conversion cost 7116 55668 Total Costs 441690

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