Marion Chemicals produces a chemical used as a base in paints.In the manufacturi
ID: 2428485 • Letter: M
Question
Marion Chemicalsproduces a chemical used as a base in paints.In the manufacturing process, all materials are added
at the start of the process,whereas labor and overhead are added evenly throughout production.
Required
Fill in the missing information in Marion's Production Cost Report for the month of December
Marion Chemicals
Production Cost Report
December 2011
Unit Reconciliation
Units in beginning WIP (100% material, 10% conversion costs) 8,000
Units started during December ?
Units to account for ?
Units completed ?
Units in ending WIP (100% material, 20% conversion costs) 4,000
Units accounted for ?
Cost per Equivalent Unit Calculation
Material Labor Overhead Total
Cost
Beginning WIP $45,200 $10,500 $26,300 $ 82,000
Cost incurred in December ? ? ? ?
Total ? ? ? ?
Units
Units completed ? ? ?
Equivalent units, ending WIP ? ? ?
Total ? ? ?
Cost per equivalent unit $1.70 $1.32 $2.64 ?
Cost Reconciliation
Total cost to account for $2,896,568
Cost of completed items $2,886,600
Cost of ending WIP
Material $?
Labor ?
Overhead ? ?
Total cost accounted for $2,896,568
Explanation / Answer
Units Reconciliation: Units in Beginning WIP (100%Mateial,10%Conversion) 8,000 Units started during the month 506,000 ______________ Units accounted for 514,000 _______________ Units completed and traansfered 510,000 Units in ending WIP(100%material,20%Conversion) 4,000 _______________ Units accounted for 514,000 ________________ Cost per Equivalent Unit Calculation: Cost Material Labor Overhead Total Beginning WIP $45,200 10,500 26,300 82,000 Cost incurred during the month 828,600 663,756 1,322,212 2,814,568 ___________ __________ __________ ____________ Total 873,800 674,256 1,348,512 2,896,568 ____________ _________ __________ ___________ Units Units completed* 510,000 510,000 510,000 Equivalent units ending WIP 4,000 800 800 ___________ ____________ ___________ Total 514,000 510,800 510,800 _____________ ____________ ____________ Cost per equivalent unit $1.70 $1.32 $2.64 Cost Reconciliation: Total cost accounted for $2,896,568 Cost of completed units transferred(510,000*5.66) $2,886,600 Cost of endind WIP Material(4,000*1.70) = 6,800 Labor (800*1.32) = 1,056 Overhead(800*2.64) = 2,112 ________ 9,968 ________________ 2,896,568Related Questions
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