Question

Exercise 16-13 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 15,500 units, 1/10 complete Materials $18,000 Units transferred out 55,400 Conversion costs 15,160 $33,160 Units started 50,600 Materials 193,520 Ending work in process 10,700 units, 1/5 complete Labor 67,200 Overhead 89,109 Prepare a production cost report for the Welding Department for the month of February.

Answer 1

PREPARE PRODUCTION COST REPORT :

Quantities	Physical unit	material	conversion cost
Units to be accounted for
Work in process jan 1	15500
Started into production	50600
Total units	66100
Units to be accounted for
Transfered out	55400	55400	55400
Work in process feb 28	10700	10700	10700*1/5=2140
Total units	66100	66100	57540

Costs :

Costs	material	conversion cost	total cost
Beginning work in process	18000	15160	33160
Cost during the period	193520	(67200+89109)=156309	349829
Total cost	211520	171469	382989
equivalent unit	66100	57540
Units cost	3.20	2.9799 or 2.98	6.1799 or 6.18
Cost to be accounted for
work in process feb 1			33160
started into production			349829
Total cost			382989

Cost Reconciliation Schedule :

Cost accounted for
Transferred out (6.18*55400)			342372
Work in process, February 28
Material (3.20*10700)		34240
Conversion costs (2.98*2140)		6377	40617
Total cost			382989