Question

The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units.

Manufacturing Costs				Production Data
Beginning work in process		$57,915		Beginning work in process		27,000	units, 10% complete
Costs transferred in		243,000		Units transferred out		97,200
Materials		102,600		Units transferred in		115,200
Labor		63,180		Ending work in process		45,000	units, 20% complete
Overhead		123,120

Prepare a production cost report for the Welding Department for the month of February. Transferred-in costs are considered materials costs. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

MAJESTIC MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28 , 2020
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, February 1
Started into production
Total units
Units accounted for
Completed and transferred out
Work in process, February 1
Started and completed
Total
Work in process, February 28
Total units
Costs				Materials		Conversion Costs		Total
Unit costs
Costs in February				$		$		$
Equivalent units
Unit costs				$		$		$
Costs to be accounted for
Work in process, February 1								$
Started into production
Total costs								$
Cost Reconciliation Schedule
Costs accounted for
Transferred out
Work in process, February 1				$
Costs to complete beginning work in process
Conversion costs
Total costs						$
Units started and completed
Total costs transferred out								$
Work in process, February 28
Materials
Conversion costs
Total costs								$

Answer 1