Rosenthal Company manufactures bowling balls through two processes: Molding and

Question

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2017 are presented below. Production Data Beginning work in process units Units started into production Ending work in process units Percent complete-ending inventory 28,160 2,560 40 % Cost Data Materials Labor Overhead $253,440 68,608 144,384 $466,432 Total

Explanation / Answer

a. Physical units Units to be accounted for Work in process, June 1 0 Started into production               28,160 Total Units               28,160 Units accounted for Transferred out               25,600 Work in process, June 30                 2,560 Total units               28,160 Working: Total Units               28,160 Work in process, June 30                 2,560 Transferred out               25,600 Materials Conversion b. Total Equivalent units               28,160               26,624 Working: Equivalent units of : Materials               25,600 +           2,560 x 100% =      28,160 Conversion               25,600 +           2,560 x 40% =      26,624 c. Materials Conversion cost total unit cost $         9.00 $               8.00 $       17.00 Working: Materials Conversion cost Total Costs $       2,53,440 $       2,12,992 Equivalent units of Production               28,160               26,624 Cost per unit $               9.00 $               8.00 d. Costs of unit: Transferred out $       4,35,200 Work in process, June 30 $           31,232 Working: EUP Cost per EUP Total Cost Transferred out: Materials               25,600 $               9.00 $       2,30,400 Conversion               25,600 $               8.00 $       2,04,800 $ 4,35,200 Work in process, June 30: Materials                 2,560 $               9.00 $           23,040 Conversion                 1,024 $               8.00 $             8,192 $     31,232 e) ROSENTHAL COMPANY Molding Department Production cost Report For the month Ended June 30, 2017 Equivalent units Quantities Physial Units Materials Conversion Units to be acccounted for: Work in process, June 1 0 Started into production               28,160 Total Units 28160 Units accounted for Transferred out               25,600         25,600               25,600 Work in process,June 30                 2,560           2,560                 1,024 Total Units               28,160         28,160               26,624 f) costs Materials Conversion Total Total costs $       2,53,440 $       2,12,992 Equivalent unit               28,160               26,624 Unit cost $               9.00 $               8.00 g) Cost to be accounted for: Work in process, June 1 0 Started into production $       4,66,432 Total cost $       4,66,432 Cost Reconilation Schedule: Cost Accounted for: Transferred out $       4,35,200 Work in process, June 30 Materials $           23,040 Conversion Cost $             8,192 $           31,232 Total Cost $       4,66,432

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