Question

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.

Beginning work in process units 0,Units started into production 24,420 Ending work in process units 2,220 Percent complete—ending inventory 40% Materials $ 219,780 Labor 59,496 Overhead $ 125,208 Total $ 404,484 Prepare a schedule showing physical units of production. Units to be accounted for Work in process, June 1 0 Started into production 24, 420 Total units 24,420 Units accounted for Transferred out ? Work in process, June 30 2,220 Total units ?

Answer 1

		Units
Reconciliation of Units
A	Opening WIP	-
B	Introduced	24,420
C=A+B	TOTAL	24,420
D	Transferred	22,200
E=C-D	Closing WIP	2,220

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	22,200	100%	22,200	100%	22,200
Closing WIP	2,220	100%	2,220	40%	888
Total	24,420	Total	24,420	Total	23,088

Materials are added at the beginning of the process hence are 100% complete

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Cost incurred during period	$        219,780.00	$          184,704.00	$            404,484.00
Total Cost to be accounted for	$        219,780.00	$         184,704.00	$            404,484.00
Total Equivalent Units	24,420	23,088
Cost per Equivalent Units	$                9.0	$                  8.00

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 9.00	2,220	$            19,980.00	22,200	$ 199,800.00
Conversion Cost	$   8.00	888	$              7,104.00	22,200	$ 177,600.00
TOTAL	$ 404,484.00	TOTAL	$            27,084.00	TOTAL	$ 377,400.00

Cost to be accounted for
Cost incurred during period:
Material	$ 219,780.00
Conversion Cost	$ 184,704.00	$        404,484.00
Total Cost to be accounted for				$            404,484.00
Cost accounted for
Cost of Units transferred	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Material	22,200	$                     9.00	$          199,800.00
Conversion Cost	22,200	$                     8.00	$          177,600.00
				$            377,400.00
Cost of ending WIP	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Material	2,220	$                     9.00	$            19,980.00
Conversion Cost	888	$                     8.00	$              7,104.00
				$               27,084.00
Total Cost accounted for				$            404,484.00

Note

1. Conversion cost includes Labor and Overheads
2. Materials are added at the beginning of the process hence are 100% complete