Question

Concord Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.

Production Data		June
Beginning work in process units		0
Units started into production		25,080
Ending work in process units		2,280
Percent complete—ending inventory		40	%

Cost Data
Materials		$225,720
Labor		61,104
Overhead		128,592
Total		$415,416

Prepare a schedule showing physical units of production.

Physical units
Units to be accounted for
Work in process, June 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, June 30
Total units

  

Determine the equivalent units of production for materials and conversion costs.

		Materials		Conversion Costs
Total equivalent units

  

Compute the unit costs of production.

		Materials		Conversion Costs		Total Unit Cost
Unit Costs		$		$		$

  

Determine the costs to be assigned to the units transferred out and in process for June.

Transferred out		$
Work in process, June 30		$

  

Prepare a production cost report for the Molding Department for the month of June.

CONCORD COMPANY Molding Department Production Cost Report For the Month Ended June 30, 2020
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, June 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, June 30
Total units
Costs				Materials		Conversion Costs		Total
Unit costs
Total Costs				$		$		$
Equivalent units
Unit costs				$		$		$
Costs to be accounted for
Work in process, June 1								$
Started into production
Total costs								$
Cost Reconciliation Schedule
Costs accounted for
Transferred out								$
Work in process, June 30
Materials						$
Conversion costs
Total costs								$

Answer 1

Schedule showing physical units of production
		Physical
Quantities		Units
Units to be
accounted for
WIP, June 1		0
Started into
production		25080
Total Units		25080
Units accounted
for
Transferred Out		22800
WIP, June 30		2280
Total Units		25080

Equivalent units of production for materials and conversion costs.
			Materials	Conversion
Total Equivalent Units			25080	23712

Unit costs of production.
			Materials	Conversion	Total Unit Costs
Unit costs			$      9.00	$      8.00	$   17.00

Costs to be assigned to the units transferred out and in process for June.
Transferred Out			$ 3,87,600.00
Work in process, June 30			$    27,816.00

		Production Cost Report
		Equivalent Units
	Physical		Conversion
Quantities	Units	Materials	Costs
Units to be
accounted for
WIP, June 1	0	0	0
Started into
production	25080
Total Units	25080
Units accounted
for
Transferred Out	22800	22800	22800
WIP, June 30	2280	2280	912
Total Units	25080	25080	23712

		Conversion
Costs	Materials	Costs	Total
Unit Costs
Total Costs	$ 2,25,720.00	$ 1,89,696.00	$ 4,15,416.00
Equivalent Units	25080	23712
Unit Costs	$              9.00	$              8.00	$             17.00
Costs to be
accounted for
WIP, June 1			$                    -
Started into
production			$ 4,15,416.00
Total			$ 4,15,416.00
Costs accounted
for
Transferred Out	(W.N.1)		$ 3,87,600.00
WIP, June 30	(W.N. 2)
Materials		$    20,520.00
Conversion		$      7,296.00	27,816.00
Total			$ 4,15,416.00

W.N.1
Cost of units transferred out
	Units	Cost/unit	Costs
Materials	22800	$      9.00	$ 2,05,200.00
Conversion	22800	$      8.00	$ 1,82,400.00
			$ 3,87,600.00

W.N.2
Cost of Closing WIP
	Units	Cost/unit	Costs
Materials	2280	$      9.00	$    20,520.00
Conversion	912	$      8.00	$      7,296.00
			$    27,816.00