Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at t
ID: 2607276 • Letter: M
Question
Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of June, 2016 are as follows. Production data Units Percent Complete Work in process units, June 1 2,425 57% Units started into production 6,225 Work in process units, June 30 2,960 41% Cost data Work in process, June 1 Materials $7,550 Coversion costs 5,800 $13,350 Direct materials 24,300 Direct labor 15,850 Manufacturing overhead 12,750 Instructions: Prepare a production cost report for the month of June, making sure to show equivalent units of production for materials and conversion costs, unit costs of production for materials and conversion costs, and the assignment of costs to units transferred out and in process at the end of June. THIS ASSIGNMENT MUST BE COMPLETED IN EXCEL. You should develop an efficient and customizable production cost report, using formulas whenever possible instead of keyed in values. No numeric values except the ones shown above should need to be keyed in. Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of June, 2016 are as follows. Production data Units Percent Complete Work in process units, June 1 2,425 57% Units started into production 6,225 Work in process units, June 30 2,960 41% Cost data Work in process, June 1 Materials $7,550 Coversion costs 5,800 $13,350 Direct materials 24,300 Direct labor 15,850 Manufacturing overhead 12,750 Instructions: Prepare a production cost report for the month of June, making sure to show equivalent units of production for materials and conversion costs, unit costs of production for materials and conversion costs, and the assignment of costs to units transferred out and in process at the end of June. THIS ASSIGNMENT MUST BE COMPLETED IN EXCEL. You should develop an efficient and customizable production cost report, using formulas whenever possible instead of keyed in values. No numeric values except the ones shown above should need to be keyed in.Explanation / Answer
Weighted Average Method Production Cost Report Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning 2,425 Started into production 6,225 Total units 8,650 Units accounted for Transferred out - 8,650 Units - 2,960 Units 5,690 5,690 5,690 Work in process, Ending 2,960 2,960 1,214 (100% - materials, 41% conversion costs) Equivalent units accounted for 8,650 8,650 6,904 Costs Unit costs Materials Conversion Total WIP, Beginning 7,550 5,800 13,350 Costs incurred in period 24,300 28,600 52,900 Total Costs 31,850 34,400 66,250 Equivalent units 8,650 6,904 Costs per Equivalent Units 3.68 4.98 8.66 Cost Assignment Conversion Total Good Units completed & Transferred out (5,690 Units) 20,951 28,353 49,304 Total Cost of goods completed & Transferred out 20,951 28,353 49,304 Work in Process - ending Inventory 10,899 6,047 16,946 Total Cost accounted for 31,850 34,400 66,250 Costs to be accounted for Work in process, Beginning 13,350 Started into production 52,900 Total costs 66,250 Cost Reconciliation Schedule Costs accounted for Transferred out 49,304 Work in process, Ending Materials 10,899 Conversion costs 6,047 16,946 Total costs 66,250 FIFO Method Production Cost Report Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning 2,425 Started into production 6,225 Total units 8,650 Units accounted for Goods Units Completed & transferred out: From Beginning WIP 2,425 - 1,043 (0% materials, 43% conversion costs) Started & Completed (5,690 - 2,425) 3,265 3,265 3,265 Normal Spoilage - - - Abnormal Spoilage - - - Work in process, Ending 2,960 2,960 1,214 (100% materials, 41% conversion costs) Equivalent units accounted for 8,650 6,225 5,521 Materials Conversion Costs Total Costs incurred in period 24,300 28,600 52,900 Equivalent Units 6,225 5,521 Cost per Equivalent Unit 3.90 5.18 9.08 Assignment of Costs: Goods Units and Completed out (5,690 Units) WIP, Beginning - 2,425 Units 7,550 5,800 13,350 Cost added to Beg. WIP in Current period - 5,401 5,401 Started and completed - 3,265 Units 12,745 16,912 29,658 Total Cost of good units completed & transferred out 20,295 28,114 48,409 WIP, Ending - 2,960 Units 11,555 6,286 17,841 Total Cost accounted For 31,850 34,400 66,250
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