The Welding Department of Healthy Company has the following production and manuf
ID: 2530575 • Letter: T
Question
The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process.
Instructions
Prepare a production cost report for the Welding Department for the month of February. It didnt say what method so the i guuess the easiest method
Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units Materials $18,000 1/10 complete Conversion costs 14,175 $ 32,175 Units transferred out 55,000 Materials 180,000 Units started 51,000 Labor 67,380 Ending work in process 11,000 units Overhead 61,445 1/5 completeExplanation / Answer
Healthy Company
Welding Department
Production Cost report
for the month ended Feb 28,2017
Quantities Physical units Equivalent Unit
material Conversion Cost
Units to be accounted for
Work in progress feb1 15000
Started into production 51000
Total units 66000
Units accounted for
transferred out 55000 55000 55000
Work in process,Feb 28 11000 11000 2200
Total units 66000 66000 57200
Costs Material in $ Conversion Cost In$ Total In $
Unit costs
Total cost (a) 198000 143000 341000
Equivalent units(b) 66000 57200
unit cost (a/b) 3 2.5 5.5
Cost to be accounted for
Work in process, feb1 32175
Started into production 308825
Total Cost 341000
Cost reconcilation Schedule
Cost accounted for
transferred out(55000*5.5) $302500
Work in process,Feb28
Material (11000*3) $33000
conversion cost (2200*2.5) $5500 $38500
Total Cost $341000
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