The Cutting Department of Cassel Company has the following production and cost d
ID: 2459582 • Letter: T
Question
The Cutting Department of Cassel Company has the following production and cost data for July.
Production
Costs
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
Materials
Conversion Costs
(b) Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)
Prepare a cost reconciliation schedule.
Cost Reconciliation
Costs accounted for
Transferred out
Work in process, July 31
Materials
Conversion costs
Total costs
Production
Costs
1. Transferred out 13,700 units. Beginning work in process $0 2. Started 3,100 units that are 60% Materials 63,840 complete as to conversion Labor 25,350 costs and 100% complete as Manufacturing overhead 21,330 to materials at July 31.Explanation / Answer
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production 16800 15560 Equivalent Units of Production for Materials = 13,700 units transferred out + 3,100 units in WIP = 16,800 units Equivalent Units of Production for Conversion Costs = 13,700 units transferred out + 60% of 3,100 units in WIP = 15,560 units (b) Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) All Amounts in Materials 3.8 Conversion costs 3 Prepare a cost reconciliation schedule. Cost Reconciliation Costs accounted for Transferred out 93160 Work in process, July 31 Materials 11780 Conversion costs 5580 Total costs 110520
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