Question

Crane 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		26,400
Ending work in process units		2,400
Percent complete—ending inventory		40	%

Cost Data
Materials		$237,600
Labor		64,320
Overhead		135,360
Total		$437,280

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.

CRANE 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

a
1
Physical units
Units to be accounted for
Work in process, June 1	0
Started into production	26400
Total units	26400
Units accounted for
Transferred out	24000
Work in process, June 30	2400
Total units	26400
2
	Materials	Conversion Costs
Total equivalent units	26400	24960
3
	Materials	Conversion Costs	Total Unit Cost
Unit costs	9.00	8.00	17.00
4
Transferred out	408000
Work in process, June 30	29280
b
CRANE COMPANY
Molding Department
Production Cost Report
For the Month Ended June 30, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, June 1	0
Started into production	26400
Total units	26400
Units accounted for
Transferred out	24000	24000	24000
Work in process, June 30	2400	2400	960
Total units	26400	26400	24960
		Materials	Conversion Costs	Total
Unit costs:
Total costs		237600	199680	437280
Equivalent units		26400	24960
Unit costs		9.00	8.00	17.00
Costs to be accounted for
Work in process, June 1				0
Started into production				437280
Total costs				437280
Cost Reconciliation Schedule
Costs accounted for
Transferred out				408000	=24000*17
Work in process, June 30
Materials			21600		=2400*9
Conversion costs			7680	29280	=960*8
Total costs				437280