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: 6,760 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 $37,088; labor $20,800; overhead $40,656.

Prepare a production cost report.

Answer 1

Sanding Department
Production Cost Report
For the Month Ended March 31, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, March 1	0
Started into production	9760
Total units	9760
Units accounted for
Transferred out	6760	6760	6760
Work in process, March 31	3000	3000	600
Total units	9760	9760	7360
		Materials	Conversion Costs	Total
Unit costs:
Total costs		37088	61456	98544
Equivalent units		9760	7360
Unit costs		3.80	8.35	12.15
Costs to be accounted for
Work in process, March 1				0
Started into production				98544
Total costs				98544
Cost Reconciliation Schedule
Costs accounted for
Transferred out				82134	=6760*12.15
Work in process, March 31
Materials			11400		=3000*3.80
Conversion costs			5010	16410	=600*8.35
Total costs				98544