Question

Production costs chargeable to the Finishing Department in June in Waterway Company are materials $16,524, labor $21,602, overhead $19,700. Equivalent units of production are materials 20,400 and conversion costs 19,300. Production records indicate that 18,200 units were transferred out, and 2,200 units in ending work in process were 50% complete as to conversion costs and 100% complete as to materials.

Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 125.)

Cost Reconciliation
Cost accounted for
Transferred out			$
Work in process
Materials	$
Conversion costs
Total cost accounted for			$

Answer 1

Answer
Cost Reconciliation
Cost accounted for		$                  53,690
Transferred out
Work in process
Materials	$           1,782
Conversion costs	$           2,354	$                    4,136
Total cost accounted for		$                  57,826
Workings:
	Materials	Conversion costs
Transferred out	18200	18200
Ending work in process	2200	1100
Equivalent units	20400	19300
	Materials	Conversion costs	Total
Total costs	$         16,524	$                  41,302
Divide by Equivalent units	20400	19300
Cost per Equivalent unit	0.81	2.14	2.95
Cost accounted for
Transferred out	$         53,690	18200*2.95
Work in process:
Materials	$           1,782	2200*0.81
Conversion costs	$           2,354	1100*2.14