Question

Rosenthal 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		29,700
Ending work in process units		2,700
Percent complete—ending inventory		40	%

Cost Data
Materials		$267,300
Labor		72,360
Overhead		152,280
Total		$491,940

1. Prepare a schedule showing physical units of production.

Physical units
Units to be accounted for
Work in process, June 1		enter a number of units
Started into production		enter a number of units
Total units		enter a total number of units
Units accounted for
Transferred out		enter a number of units
Work in process, June 30		enter a number of units
Total units

2. Determine the equivalent units of production for materials and conversion costs.

3. Compute the unit costs of production.

4. Determine the costs to be assigned to the units transferred out and in process for June.

5. Prepare a production cost report for the Molding Department for the month of June.

Answer 1

1
Physical units
Units to be accounted for
Work in process, June 1	0
Started into production	29700
Total units	29700
Units accounted for
Transferred out	27000
Work in process, June 30	2700
Total units	29700
2
	Materials	Conversion Costs
Equivalent units	29700	28080
3
	Materials	Conversion Costs	Total unit cost
Unit costs	9.00	8.00	17.00
4
Transferred out	459000
Work in process, June 30	32940
5
ROSENTHAL 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	29700
Total units	29700
Units accounted for
Transferred out	27000	27000	27000
Work in process, June 30	2700	2700	1080
Total units	29700	29700	28080
Costs		Materials	Conversion Costs	Total
Unit costs:
Total costs		267300	224640	491940
Equivalent units		29700	28080
Unit costs		9.00	8.00	17.00
Costs to be accounted for
Work in process, June 1				0
Started into production				491940
Total costs				491940
Cost Reconciliation Schedule
Costs accounted for
Transferred out				459000	=27000*17
Work in process, June 30
Materials			24300		=2700*9
Conversion costs			8640	32940	=1080*8
Total costs				491940