Question

Concord Processing Company uses a weighted-average process cost system and manufactures a single product—an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking department is as follows.

Prepare a schedule that shows how the equivalent units were computed so that you can complete the “Quantities: Units accounted for” equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.) CONCORD PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for    Work in process, October 1    (all materials, 70% conversion costs) 20,800    Started into production 156,000       Total units 176,800 Units accounted for    Transferred out 124,800    Work in process, October 31    (60% materials, 40% conversion costs) 52,000       Total units accounted for 176,800 Costs Materials Conversion Costs Total Unit costs    Total Costs $249,600 $109,200 $358,800    Equivalent units    Unit costs $ $ $ Costs to be accounted for    Work in process, October 1 $31,200    Started into production 327,600       Total costs $358,800

Complete the “Cost Reconciliation Schedule” part of the production cost report. Cost Reconciliation Schedule Costs accounted for    Transferred out $    Work in process, October 31       Materials $       Conversion costs    Total costs $

Answer 1

Prepare a schedule that shows how the equivalent units were computed so that you can complete the “Quantities: Units accounted for” equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.) CONCORD PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for    Work in process, October 1    (all materials, 70% conversion costs) 20,800    Started into production 156,000       Total units 176,800 Units accounted for    Transferred out 124,800 124800 124800    Work in process, October 31    (60% materials, 40% conversion costs) 52,000 31200 20800       Total units accounted for 176,800 156000 145600 Costs Materials Conversion Costs Total Unit costs    Total Costs $249,600 $109,200 $358,800    Equivalent units 156000 145600    Unit costs $1.6 $0.75 $2.35 Costs to be accounted for    Work in process, October 1 $31,200    Started into production 327,600       Total costs $358,800

Complete the “Cost Reconciliation Schedule” part of the production cost report. Cost Reconciliation Schedule Costs accounted for    Transferred out (124800*2.35) $293280    Work in process, October 31       Materials (31200*1.6) $49920       Conversion costs 15600 65520    Total costs $358800