Do It! Review 16-4 In March, Kelly Company had the following unit production cos

Question

Do It! Review 16-4 In March, Kelly Company had the following unit production costs: materials $10 and conversion costs $8. On March 1, it had no work in process. During March, Kelly transferred out 24,000 units. As of March 31, 4,700 units that were 50% complete as to conversion costs and 100% complete as to materials were in ending work in process. Compute the total units to be accounted for. Total units LINK TO TEXT Compute the equivalent units of production Materials Conversion costs The equivalent units of production LINK TO TEXT Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, March 31 Materials Conversion costs Total costs

Explanation / Answer

1) Total units      28,700 Working: Units transferred out         24,000 Units in ending work in process           4,700 Total Units to be accounted for         28,700 2) Materials Conversion Costs The Equivalent units of prodution      28,700      26,350 Working: a. Equivalent units of materials = 24000+(4700*100%) =        28,700 b. Equivalent units of conversion = 24000+(4700*50%) =        26,350 3) Cost Reconcilation Schedule: Cost accouunted for: Transferred out $ 4,32,000 Work in process, March 31 Materials $ 47,000 Conversion Costs $ 18,800 $     65,800 Total Costs $ 4,97,800 Working: Equivalent units of production (EUP) Cost per EUP Total Costs Transferred out      24,000 $            18 $       4,32,000 (10+8) Work in process, March 31 Materials         4,700 $            10 $           47,000 Conversion Costs         2,350 $ 8 $           18,800

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