Sanderson Company has the following production data for March: no beginning work
ID: 2478380 • Letter: S
Question
Sanderson Company has the following production data for March: no beginning work in process, units started and completed 30,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion costs. Sanderson uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $12, prepare the cost section of the production cost report for Sanderson Company.
Sanderson Company has the following production data for March: no beginning work in process, units started and completed 30,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion costs. Sanderson uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $12, prepare the cost section of the production cost report for Sanderson Company SANDERSON COMPANY (Partial) Production Cost Report For the Month Ended March 31 COSTS Conversion Costs Materials Total Unit costs Total costs Equivalent units Unit costs Costs to be accounted for In process, March 1 Costs in March Total costs Costs accounted for Transferred out In process, March 1 Started and completed In process, March 31 Materials Conversion costs Total costsExplanation / Answer
Particulars Total units Material Conversion Costs % completion Equivalent units % completion Equivalent units Started and completed 30000 100% 30000 100% 30000 Ending WIP 5000 100% 5000 40% 2000 Total 35000 35000 32000 Sanderson Compnay (Partial) Production Cost report For the month ended March 31 Material Conversion Costs Total Unit Costs Total costs $ 2,10,000 $ 3,84,000 $ 5,94,000 Equivalent Units 35000 32000 Unit Costs $ 6 $ 12 $ 18 Cost to be accumulated in process, March 1 $ 0 Cost in march $ 0 Total costs $ 0 Cost accounted for transferred out In process march 1 $ 0 Started and completed (30000 x $18) $ 5,40,000 In process March 31 Materials (5000 x$6) $ 30,000 Conversion costs (2000x$12) $ 24,000 $ 54,000 Total Costs $ 5,94,000
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