Question

Jessica Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred evenly. Jessica uses the FIFO method to calculate equivalent units. Production and cost data for the month of August are as follows: Production Data—Hockey pucks Units Percent Complete Work in process units, August 1 400 70% Units started into production 1,500 Work in process units, August 31 500 30% Cost Data—Hockey pucks Work in process, August 1 $1,000 Direct materials 1,500 Direct labour 1,100 Manufacturing overhead 805 Production Data—Soccer balls Work in process units, August 1 200 90% Units started into production 2,000 Work in process units, August 31 150 60% Cost Data—Soccer balls Work in process, August 1 $400 Direct materials 2,400 Direct labour 950 Manufacturing overhead 1,206

Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, e.g. 5,275. Round per unit costs to the 3 decimal places, e.g. 15.253.) 1. The equivalent units of production for materials and conversion costs. Hockey pucks Soccer balls Materials Conversion Cost 2. The unit costs of production for materials and conversion costs. Hockey pucks Soccer balls Materials $ $ Conversion Cost $ $ 3. The assignment of costs to units transferred out and to work in process at the end of the accounting period. Hockey pucks Soccer balls Beginning WIP $ $ Complete beginning WIP $ $ Started and completed $ $ Ending WIP $ $

Prepare a production cost report for the month of August for the hockey pucks only. (Round unit cost to 3 decimal places, e.g. 15.251 and other answers to to the nearest whole dollar, e.g. 5,275.) JESSICA COMPANY Production Cost Report—Hockey pucks For the Month Ended August 31 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, August 1 Started into production Total units Units accounted for Completed and transferred out Work in process, August 1 Started and completed Work in process, August 31 Total units Costs Unit costs Costs in August $ $ Equivalent units Unit costs $ $ Costs to be accounted for Work in process, August 1 $ Added into production Total costs $

Answer 1

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Final Answer
Answer 1	Hockey	Soccer
Materials	1,500.00	2,000.00
Conversion	1,270.00	1,960.00
Answer 2	Hockey	Soccer
Materials	1.00	1.20
Conversion	1.50	1.10
Answer 3	Hockey	Soccer
Beginning WIP	1,000.00	400.00
Complete Beginning WIP	180.00	22.00
Started and completed in Aug	2,500.00	4,255.00
Ending WIP	725.00	279.00

Workings for answer 4
Goods transferred out in Aug
Inventory in process Aug 1	400.00
Add: Units started into production	1,500.00
Less: Inventory in process, Aug 31	500.00
Goods transferred out in Aug	1,400.00
Started and completed in Aug
Goods transferred out in Aug	1,400.00
Less: Inventory in process Aug 1	400.00
Started and completed in Aug	1,000.00

Jessica Company

Cost of Production Report- Hockey Pucks

For the Month Ended Aug 31

		Equivalent Units
Units to be assigned costs:		Materials	Conversion
Inventory in process Aug 1	400.00	-	120.00	See note A
Started and completed in Aug	1,000.00	1,000.00	1,000.00
Inventory in process, Aug 31	500.00	500.00	150.00	This is closing units multiplied by % of completion
Total units to be assigned costs:	1,900.00	1,500.00	1,270.00

Cost Information	Materials	Conversion	Total
Costs per equivalent unit
Total costs for August	1,500.00	1,905.00	3,405.00
Total equivalent units	1,500.00	1,270.00
Cost per equivalent unit	1.000	1.500	2.500
Costs assigned to production:
Inventory in process Aug 1			1,000.00
Complete Beginning WIP	-	180.00	180.00
Started and completed in Aug	1,000.00	1,500.00	2,500.00
Inventory in process, Aug 31	500.00	225.00	725.00
Total costs assigned by the Department			4,405.00

Cost of Production Report- Soccer Balls

For the Month Ended Aug 31

Unit information

Goods transferred out in Aug
Inventory in process Aug 1	200.00
Add: Units started into production	2,000.00
Less: Inventory in process, Aug 31	150.00
Goods transferred out in Aug	2,050.00
Started and completed in Aug
Goods transferred out in Aug	2,050.00
Less: Inventory in process Aug 1	200.00
Started and completed in Aug	1,850.00

		Equivalent Units
Units to be assigned costs:		Materials	Conversion
Inventory in process Aug 1	200.00	-	20.00	See note A
Started and completed in Aug	1,850.00	1,850.00	1,850.00
Inventory in process, Aug 31	150.00	150.00	90.00	This is closing units multiplied by % of completion
Total units to be assigned costs:	2,200.00	2,000.00	1,960.00

Cost Information	Materials	Conversion	Total
Costs per equivalent unit
Total costs for August	2,400.00	2,156.00	4,556.00
Total equivalent units	2,000.00	1,960.00
Cost per equivalent unit	1.200	1.100	2.300
Costs assigned to production:
Inventory in process Aug 1			400.00
Complete Beginning WIP	-	22.00	22.00
Started and completed in Aug	2,220.00	2,035.00	4,255.00
Inventory in process, Aug 31	180.00	99.00	279.00
Total costs assigned by the Department			4,956.00