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.

Manufacturing Costs						Production Data
Beginning work in process						Beginning work in process		15,000	units, 1/10 complete
Materials		$18,000				Units transferred out		54,600
Conversion costs		14,360		$32,360		Units started		50,900
Materials				200,129		Ending work in process		11,300	units, 1/5 complete
Labor				67,500
Overhead				84,171

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.)

Quantities Physical Units Materials Conversion costs

Units to be acct for

WIP Feb 1 ?

Started into production ?

Total units ?

Units acct for

Transferred out ? ? ?

WIP Feb 28 ? ? ?

Total units ? ? ?

Costs Materials Conversion Costs Total

Unit costs

Total costs ? ? ?

Equivalent costs ? ? ?

Unit costs ? ? ?

Costs to be acct for

WIP Feb 1 ?

Started into production ?

Total costs ?

Cost reconciliation schedule

Costs acct for

Transferred out ?

Wip Feb 28 ?

Materials ?

Conversion costs ? ?

Total costs ?

Answer 1

		Equivalent Units
Quantities	Physical		Conversion
	Units	Materials	Costs
Units to be accounted for
Work in process, February 1	15,000
Started into production	50,900
Total units	65,900
Units accounted for
Transferred out	54,600	54,600	54,600
Work in process, February 28	11,300	11,300	2,260
Total units	65,900	65,900	56,860
Costs		Conversion
	Materials	Costs	Total
Unit costs
Total Costs	$218,129	$166,031	$384,160
Equivalent units	65,900	56,860
Unit costs	$3.31	$2.92	$6.23
Costs to be accounted for
Work in process, February 1	$18,000	$14,360	$32,360
Started into production	$200,129	$151,671	$351,800
Total costs	$218,129	$166,031	$384,160
Cost Reconciliation Schedule
Costs accounted for
Transferred out			$340,158
Work in process, February 28
Materials		$37,403
Conversion costs		$6,599	$44,002
Total costs			$384,160