Hello, I am working on an accounting question below. However I am unsure of how
ID: 2407141 • Letter: H
Question
Hello, I am working on an accounting question below. However I am unsure of how to solve each of the parts. I would be very grateful for help.
Production
Costs
Materials
Conversion Costs
Cost Reconciliation
Costs accounted for
Transferred out
Work in process, July 31
Materials
Conversion costs
Total costs
The Cutting Department of Cassel Company has the following production and cost data for July.Production
Costs
1. Transferred out 12,300 units. Beginning work in process $0 2. Started 4,400 units that are 60% Materials 64,295 complete as to conversion Labor 19,340 costs and 100% complete as Manufacturing overhead 20,400 to materials at July 31.Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.
Explanation / Answer
Equivalent units of production: Materials Conversion costs (in units) Units transferred out 12300 12300 Work in process , July 31 4400 2640 (4400*100%) (4400*60%) Total equivalent units 16700 14940 Cost per equivalent units=Total cost/Total equivalent units Materials Conversion costs Cost 64295 39740 (19340+20400) Total equivalent units 16700 14940 Cost per equivalent units 3.85 2.66 Cost reconcilation: Costs accounted for Transferred out [12300*(3.85+2.66)] 80073 Work in process,July 31 Materials (4400*3.85) 16940 Conversion costs (2640*2.66) 7022 Total costs 104035
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