contestada

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.
Manufacturing Costs
Beginning work in process
Materials $17,600
Conversion costs 15,060 $22,660
Materials 199,834
Labor 67,400
Overhead 49,238
Production Data
Beginning work in process 14,500 units, 1/10 complete
Units transferred out 55,300
Units started 50,600
Ending work in process 9,800 units, 1/5 complete
1. Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.)

Respuesta :

Answer and Explanation:

The Preparation of production cost report for the Welding Department for the month of February is shown below:-

                              Healthy Company

                            Welding Department

                            Production cost report

                            For the month of Feb

                                                                          Equivalent units

Quantities                        Physical units      Materials       Conversion costs

Units to be accounted for

Work in progress 1 Feb    14,500

Started into production    50,600

Total units                         65,100

Units accounted for

Transferred out                55,300                   55,300           55,300

Work in progress

28 Feb                              9,800                        9,800            1,960

                                                                                              (9,800 × 1 ÷ 5)

Total units                         65,100                   65,100             57,260  

Costs               Material costs          Conversion costs       Total

Total cost              282,534                      188,958                471,492

Equivalent cost      65,100                          57,260                122,360

Unit costs               4.34                               3.3                       3.86

Cost to be accounted for

Work in progress Feb 1                                                            32,660

                                                                                         (17,600 + 15,060)

Started into production                                                           316,472

                                                                          (199,834 + 67,400 + 49,238)

Total costs                                                                                349,132

Working note:-

For Material cost = (17,600 + 199,834 +  65,100)

For Conversion cost = (15,060 + 67,400 + 49,238 + 57,260)

                                 Cost reconciliation schedule

Cost accounted for

Transferred out                       213,458

                                           (55,300 × 3.86)

Work in progress Feb 28

Material              42,532

(9,800 × 4.34)

Conversion         6,468           49,000

(1,960 × 3.3)

Total cost                                 262,458