Question

Erin Company's inventory at December 1 and the costs charged to Work in Process—Department B during December are as follows:

1,200 units, 40% completed		$47,800
From Department A, 26,000 units		845,000
Direct labor		312,000
Factory overhead		176,770

During December, all direct materials are transferred from Department A, the units in process at December 1 were completed, and of the 26,000 units entering the department, all were completed except 1,000 units that were 70% completed as to conversion costs. Inventories are costed by the first-in, first-out method.

Prepare a cost of production report for December.

Round your cost per equivalent unit amounts to two decimal places. Round all other amounts to the nearest dollar. If an amount value is zero enter "0" as answer.

Erin Company
Cost of Production Report—Department B
For the Month Ended December 31
Unit Information
Units charged to production:
Inventory in process, December 1
Received from Department A
Total units accounted for by Department B
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, December 1 (40% completed)
Started and completed in December
Transferred to finished goods in December
Inventory in process, December 31 (70% complete)
Total units to be assigned costs
Cost Information
COSTS:
		Direct Materials Costs	Conversion Costs
Cost per equivalent unit:
Total costs for December in Department B		$	$
Total equivalent units
Cost per equivalent unit		$	$
Costs assigned to production:
	Direct Materials Costs	Conversion Costs	Total Costs
Inventory in process, December 1			$
Costs incurred in December
Total costs accounted for by Department B			$
Costs allocated to completed and partially completed units:
Inventory in process, December 1-balance			$
To complete inventory in process, December 1	$	$
Cost of completed December 1 work in process			$
Started and completed in December
Transferred to finished goods in December			$
Inventory in process, December 31
Total costs assigned by Department B			$

Answer 1

	Physcial units	Materials	Conversion
Work in Process Beginning	1200
Started during the period	26000
To account for	27200
Work in Process Beginning	1200	0	720
Units started and completed	25000	25000	25000
Units transferred to next department	26200	25000	25720
Ending Work in Process :	1000	1000	700
Accounted for	27200
Equivalent units		26000	26420
	Materials	Conversion	Total
Cost added during the period	$         8,45,000	$       4,88,770	$        13,33,770
Equivalent units of Production	26000	26420
Cost per equivalent unit	$              32.50	$            18.50	$               51.00
Cost Reconciliation
	Materials	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	1000	700
Cost per equivalent unit	$              32.50	$            18.50
Cost of Ending work in Process Inventory	$            32,500	$          12,950	$             45,450
	Materials	Conversion	Total
Units Completed and transferred out
Cost of Beginning Work in Process			$             47,800
Cost of work on Beginning Work in Process	$                     -	$          13,320	$             13,320
Total Cost of Beginning WIP	$                     -	$          13,320	$             61,120
Units started and completed	25000	25000
Cost per equivalent unit	$              32.50	$            18.50
Cost of units started and completed	$         8,12,500	$      4,62,500	$       12,75,000
Cost of units transferred out			$       13,36,120
Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory	$            47,800
Costs added to the production during the year	$       13,33,770
Total Costs to be accounted for	$      13,81,570
Cost of Ending work in Process Inventory	$            45,450
Cost of units transferred out	$       13,36,120
Total Costs accounted for	$      13,81,570