Question

Can you please explain how to do this problem?

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		58%
	Units started into production				6,200
	Work in process units, June 30				3,010
	Cost data
	Work in process, June 1
	Materials		$7,600
	Coversion costs		5,900		$13,500
	Direct materials				23,700
	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.

Answer 1

Reconciliation of production
Units to be accounted
Work in proces , June 1	2425
Started into production	6200
Total units to be accounted	8625
Accounted by
Work in process , June 30	3010
Units completed and transferred *	5615
Total units accounted	8625
* Balancing number
Out of the units completed and transferred of 5,615
2,425 units are from the beginning WIP and the
balance are from the units started into production.
Beginning WIP	2425
Started and completed	3190
Units completed and transferred	5615
Calculation of equivalent units of production
		Direct material		Conversion
	Total units	%	Units	%	Units
Work in process , June 1	2425	0	0	42%	1018.5
Started and completed	3190	100%	3190	100%	3190.0
Work in process , June 30 *	3010	100%	3010	50%	1505.0
Equivalent units			6200		5713.5
* As the percentage of completion is not provided it is assumed to be 50%
	Direct	Conversion
	Material	cost *
Cost incurred during the month	23700	28600
Equivalent units	6200	5713.5
Cost per equivalent unit	3.82	5.01
* Conversion cost is the sum of direct labor and manufacturing overhead.
Cost allocation	Direct material			Conversion			Total
	Eq. Units	Cost per unit	Amount	Eq. Units	Cost per unit	Amount	Cost
Work in Process , June 1	0	3.82	0	1018.5	5.01	5098	5098
Started and completed	3190	3.82	12194	3190	5.01	15968	28162
Work in process , June 30	3010	3.82	11506	1505	5.01	7534	19040
Total			23700			28600
Cost of units transferred
	Direct	Conversion	Total
	Material
Balance as at June 1	7600	5900	13500
Cost incurred in June:
On beginning work in process	0	5098	5098
On units started and completed	12194	15968	28162
Total cost of the units transferred out	19794	26966	46760

Value of the units in proces at the end of the month
Direct material	11506
Conversion cost	7534
Cost incured on ending work in process	19040