During 2018, Anywhere, Inc. (AI) incurred the following product costs: The 2017

Question

During 2018, Anywhere, Inc. (AI) incurred the following product costs:

The 2017 ending balance in the Work in Process (WIP) account was $28,000. Accordingly, this is the beginning WIP balance for 2018. There were 120 units of product in beginning WIP inventory. AI started 1,820 units of product during 2018. Ending WIP inventory consisted of 95 units that were 80 percent complete.

Required

Prepare a cost of production report by filling in the cells that are left blank.

Raw materials $ 66,000 Labor 80,362 Overhead 60,000 Equivalent Unit Computations Equivalent Units 120 1,820 1,940 (95) 1,845 Complete Units Beginning inventory Units started Total units available for completion Units in ending inventory Units complete 100 | % Total equivalent units 1,921 Cost per Equivalent Unit Cost per Unit CostUnits Beginning inventory Raw materials Labor Overhead 28,000 60,000 Total product cost +1,921 Allocation of Product Cost Cost transferred to finished goods Cost in ending inventory Total product cost $ 234,36:2

Explanation / Answer

Solution:

Equivalent unit computation Particulars Units % Complete Equivalent units Beginning inventory 120 Units started 1820 Total units available for completion 1940 Units in ending inventory 95 80% 76 Units complete 1845 100% 1845 Total Equivalent units 1921

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