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The inventory at May 1 and the costs charged to Work in Process--Department B du

ID: 2461673 • Letter: T

Question

The inventory at May 1 and the costs charged to Work in Process--Department B during May for Stella Company are as follows:

During May, all direct materials are transferred from Department A, the units in process at May 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Inventories are costed by the first-in, first-out method.

Prepare a cost of production report for May.

If required, round your cost per equivalent unit amounts to four decimal places. Round all other amounts to the nearest dollar. If an amount value is zero enter "0" as answer.

Inventory in process, May 1

  

Received from Department A

  

Total units accounted for by Dept. B

  

Equivalent Units

Whole Units

Direct Materials

Conversion

Inventory in process, May 1 (60% completed)

  

  

  

Started and completed in May

  

  

  

Transferred to finished goods in May

  

  

  

Inventory in process, May 31 (70% complete)

  

  

  

Total units to be assigned costs

  

  

  

Direct Materials

Conversion

Total costs for May in Dept. B

$  

$  

Total equivalent units

  

  

Cost per equivalent unit

$  

$  

Direct Materials Costs

Conversion Costs

Total Costs

Inventory in process, May 1

$  

Costs incurred in May

  

Total costs accounted for by Department B

$  

Costs allocated to completed and partially completed units:

Inventory in process, May 1, bal

$  

To complete inventory in process, May 1

$  

$  

  

Started and completed in May

  

  

  

Transferred to finished goods in May

  

Inventory in process, May 31

  

  

  

Total costs assigned by Dept. B

$  

  


Unit Information Units charged to production:

Inventory in process, May 1

  

Received from Department A

  

Total units accounted for by Dept. B

  

Units to be assigned cost:

Equivalent Units

Whole Units

Direct Materials

Conversion

Inventory in process, May 1 (60% completed)

  

  

  

Started and completed in May

  

  

  

Transferred to finished goods in May

  

  

  

Inventory in process, May 31 (70% complete)

  

  

  

Total units to be assigned costs

  

  

  

Cost Information Units costs:

Direct Materials

Conversion

Total costs for May in Dept. B

$  

$  

Total equivalent units

  

  

Cost per equivalent unit

$  

$  

Costs charged to production:

Direct Materials Costs

Conversion Costs

Total Costs

Inventory in process, May 1

$  

Costs incurred in May

  

Total costs accounted for by Department B

$  

Costs allocated to completed and partially completed units:

Inventory in process, May 1, bal

$  

To complete inventory in process, May 1

$  

$  

  

Started and completed in May

  

  

  

Transferred to finished goods in May

  

Inventory in process, May 31

  

  

  

Total costs assigned by Dept. B

$  

  

Explanation / Answer

Unit Information Units charged to production Inventory in process May 1 12000 Received from Department A 55000 Total units accounted for by Dept B 67000 Units to be assigned cost Equivalent units Whole Units Direct Material Conversion Inventory In process May 1 12000 7200 7200 (60% completed) Started and completed in May 49000 49000 49000 Transferred to Finished Goods in May 61000 61000 61000 Inventory in process May 31 6000 4200 4200 (70% completed) Total Units to be assigned cost 67000 60400 60400 Cost Information Units costs Direct material Conversion Total cost for May in Dept.B (in $)                      1,15,500                       5,22,915 Total Equivalent Units 60400 60400 Cost per equivalent unit (in $)                          1.9123                          8.6575 Cost charged to Production Direct Material cost Conversion cost Total Cost Inventory in process May 1                          62,400 Cost incurred in MAY                       6,38,415 Total cost accounted for by Depart.B                       7,00,815 Costs allocated to completed and partially completed units : Inventory in process May 1                          62,400 To Complete Inventory in process May 1                             13,769                          62,333                          76,102 Started and Completed in May                             93,703                      4,24,218                       5,17,920 Transferred to Finished goods in May                       6,56,422 Inventory in process May 31                               8,032                          36,362                          44,393 Total cost assigned by Dept.B                       7,00,815

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