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		$39,897		Beginning work in process		18,600	units, 10% complete
Costs transferred in		167,400		Units transferred out		66,960
Materials		70,680		Units transferred in		79,360
Labor		43,524		Ending work in process		31,000	units, 20% complete
Overhead		84,816

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

	Physical units	Materials	Conversion
Work in Process Beginning	18600
Started during the period	79360
Total Units to account for	97960
Work in Process Beginning	18600	0	16740
Units started and completed	48360	48360	48360
Units transferred to next department	66960	48360	65100
Ending Work in Process :	31000	31000	6200
Total Units Accounted for	97960
Equivalent units		79360	71300
	Materials	Conversion	Total
Cost added during the period	$        238,080	$        128,340	$           366,420
Equivalent units of Production	79360	71300
Cost per equivalent unit	$              3.00	$              1.80	$                 4.80
Costs to be accounted for
	Materials	Conversion	Total
Work in Process, February 1			$             39,887
Cost added during the period			$           366,420
Total Costs			$           406,307
Costs accounted for
	Materials	Conversion	Total
Units Completed and transferred out
Cost of Beginning Work in Process			$             39,887
Cost of work on Beginning Work in Process	$                   -	$          30,132	$             30,132
Total Cost of Beginning WIP	$                   -	$          30,132	$             70,019
Units started and completed	48360	48360
Cost per equivalent unit	$              3.00	$              1.80
Cost of units started and completed	$       145,080	$          87,048	$           232,128
Cost of units transferred out	$       145,080	$       117,180	$           302,147
	Materials	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	31000	6200
Cost per equivalent unit	$              3.00	$              1.80
Cost of Ending work in Process Inventory	$          93,000	$          11,160	$           104,160
Total Costs accounted for			$           406,307