Jessica Company manufactures hockey pucks and soccer balls. For both products, m
ID: 2544221 • Letter: J
Question
Jessica Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred evenly. Jessica uses the FIFO method to calculate equivalent units. Production and cost data for the month of August are as follows:
Work in process units, August 1
500
70%
Units started into production
1,600
Work in process units, August 31
600
30%
Cost Data—Hockey pucks
Work in process, August 1
$1,125
Direct materials
1,600
Direct labour
1,160
Manufacturing overhead
1,000
Production Data—Soccer balls
Work in process units, August 1
200
90%
Units started into production
2,000
Work in process units, August 31
150
60%
Cost Data—Soccer balls
Work in process, August 1
$ 450
Direct materials
2,500
Direct labour
1,000
Manufacturing overhead
995
Instructions: Determine equivalent units and unit cost, and prepare production cost report using FIFO.
A) Calculate the following for both the hockey pucks and the soccer balls:
1.The equivalent units of production for materials and conversion costs
2.The unit costs of production for materials and conversion costs
3.The assignment of costs to units transferred out and to work in process at the end of the accounting period
B) Prepare a production cost report for the month of August for the hockey pucks only.
Production Data—Hockey pucks Units Percent CompleteWork in process units, August 1
500
70%
Units started into production
1,600
Work in process units, August 31
600
30%
Cost Data—Hockey pucks
Work in process, August 1
$1,125
Direct materials
1,600
Direct labour
1,160
Manufacturing overhead
1,000
Production Data—Soccer balls
Work in process units, August 1
200
90%
Units started into production
2,000
Work in process units, August 31
150
60%
Cost Data—Soccer balls
Work in process, August 1
$ 450
Direct materials
2,500
Direct labour
1,000
Manufacturing overhead
995
Explanation / Answer
A.
1.
2.
3.
B..
Jesica Company Calculation of equivalent units -- Hockey Pucks Whole Equivalent Units Units Material Conversion Units charged into production Inventory in process, beginning 500 Started production 1600 Total units accounted for by the Sifting Department 2100 Units to be assigned costs: Beginning inventory in process 500 0 150 Started and finished 1000 1000 1000 Inventory in process , Ending (30% complete) 600 600 180 Total units to be assigned costs 2100 1600 1330Related Questions
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