Question

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.

Production: 7,000 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.

Manufacturing costs: Materials $33,000; labor $21,000; overhead $36,000.

Prepare a production cost report.

Answer 1

		Production Cost Report
		Equivalent Units
	Physical		Conversion
Quantities	Units	Materials	Costs
Units to be
accounted for
Beginning WIP	0	0	0
Started into
production	10000
Total Units	10000
Units accounted
for
Transferred Out	7000	7000	7000
Ending WIP	3000	3000	600
Total Units	10000	10000	7600

		Conversion
Costs	Materials	Costs	Total
Unit Costs
Total Costs	$   33,000.00	$    57,000.00	$     90,000.00
Equivalent Units	10000	7600
Unit Costs	$             3.30	$              7.50	$             10.80
Costs to be
accounted for
Beginning WIP			$                    -
Started into
production			$     90,000.00
Total			$     90,000.00
Costs accounted
for
Transferred Out	(W.N.1)		$     75,600.00
Ending WIP	(W.N.2)		$     14,400.00
Total			$     90,000.00

W.N.1
Cost of units completed
	Units	Cost/unit	Costs
Materials	7000	$      3.30	$    23,100.00
Conversion	7000	$      7.50	$    52,500.00
			$    75,600.00

Cost of Ending WIP
	Units	Cost/unit	Costs
Materials	3000	$      3.30	$      9,900.00
Conversion	600	$      7.50	$      4,500.00
			$    14,400.00