Question

The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units, 1/10 complete Materials $18,000 Units transferred out 55,000 Conversion costs 14,175 $32,175 Units started 51,000 Materials 180,000 Ending work in process 11,000 units, 1/5 complete Labor 67,380 Overhead 61,445 Prepare a production cost report for the Welding Department for the month of February.

Answer 1

Welding Department
Production Cost Report
For the Month Ended February 28, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, February 1	15000
Started into production	51000
Total units	66000
Units accounted for
Transferred out	55000	55000	55000
Work in process, February 28	11000	11000	2200
Total units	66000	66000	57200
		Materials	Conversion Costs	Total
Unit costs:
Total costs		198000	143000	341000
Equivalent units		66000	57200
Unit costs		3.00	2.50	5.50
Costs to be accounted for
Work in process, February 1				32175
Started into production				308825
Total costs				341000
Cost Reconciliation Schedule
Costs accounted for
Transferred out				302500	=55000*5.50
Work in process, February 28
Materials			33000		=11000*3.00
Conversion costs			5500	38500	=2200*2.50
Total costs				341000