Question

Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning
of the production process and conversion costs are incurred uniformly. Production and cost
data for the month of June, 2016 are as follows.
	Production data				Units		Percent Complete
	Work in process units, June 1				2,425		57%
	Units started into production				6,225
	Work in process units, June 30				2,960		41%
	Cost data
	Work in process, June 1
	Materials			$7,550
	Coversion costs			5,800	$13,350
	Direct materials				24,300
	Direct labor				15,850
	Manufacturing overhead				12,750
Instructions:
Prepare a production cost report for the month of June, making sure to show equivalent
units of production for materials and conversion costs, unit costs of production for materials
and conversion costs, and the assignment of costs to units transferred out and in process at
the end of June.
THIS ASSIGNMENT MUST BE COMPLETED IN EXCEL. You should develop an efficient and
customizable production cost report, using formulas whenever possible instead of keyed in
values. No numeric values except the ones shown above should need to be keyed in.

Answer 1

Weighted Average Method
Production Cost Report
Particulars		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process - Beginning	2,425
Started into production	6,225
Total units	8,650
Units accounted for
Transferred out - 8,650 Units - 2,960 Units	5,690	5,690	5,690
Work in process, Ending	2,960	2,960	1,214
(100% - materials, 41% conversion costs)
Equivalent units accounted for	8,650	8,650	6,904
Costs
Unit costs	Materials	Conversion	Total
WIP, Beginning	7,550	5,800	13,350
Costs incurred in period	24,300	28,600	52,900
Total Costs	31,850	34,400	66,250
Equivalent units	8,650	6,904
Costs per Equivalent Units	3.68	4.98	8.66
Cost Assignment		Conversion	Total
Good Units completed & Transferred out (5,690 Units)	20,951	28,353	49,304
Total Cost of goods completed & Transferred out	20,951	28,353	49,304
Work in Process - ending Inventory	10,899	6,047	16,946
Total Cost accounted for	31,850	34,400	66,250
Costs to be accounted for
Work in process, Beginning			13,350
Started into production			52,900
Total costs			66,250
Cost Reconciliation Schedule
Costs accounted for
Transferred out			49,304
Work in process, Ending
Materials		10,899
Conversion costs		6,047	16,946
Total costs			66,250
FIFO Method
Production Cost Report
Particulars		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process - Beginning	2,425
Started into production	6,225
Total units	8,650
Units accounted for
Goods Units Completed & transferred out:
From Beginning WIP	2,425	-	1,043
(0% materials, 43% conversion costs)
Started & Completed (5,690 - 2,425)	3,265	3,265	3,265
Normal Spoilage	-	-	-
Abnormal Spoilage	-	-	-
Work in process, Ending	2,960	2,960	1,214
(100% materials, 41% conversion costs)
Equivalent units accounted for	8,650	6,225	5,521
	Materials	Conversion Costs	Total
Costs incurred in period	24,300	28,600	52,900
Equivalent Units	6,225	5,521
Cost per Equivalent Unit	3.90	5.18	9.08
Assignment of Costs:
Goods Units and Completed out (5,690 Units)
WIP, Beginning - 2,425 Units	7,550	5,800	13,350
Cost added to Beg. WIP in Current period	-	5,401	5,401
Started and completed - 3,265 Units	12,745	16,912	29,658
Total Cost of good units completed & transferred out	20,295	28,114	48,409
WIP, Ending - 2,960 Units	11,555	6,286	17,841
Total Cost accounted For	31,850	34,400	66,250