Question

1. For the Machining Department for July, what TOTAL amount of product costs are to be assigned to the units completed and the units in the ending inventory?

2.What is the total cost of goods manufactured for the Machining Department for July?

3.What is the total cost of the ending work in process inventory for the Machining Department for July?

4. For July what total amount of cost has been assigned to the units completed and the ending work in process (what is the total of the cost of goods manufactured and the cost of the ending work in process inventory)?

additional info:

The beginning work in process inventory of the Machining Department consisted of 3,500 units that were 80% complete as to conversion costs. During July, an additional 14,300 units were started into production. A TOTAL of 16,100 units were completed and transferred out to the Painting Department. The ending work in process inventory consisted of 1,700 units which were 40% complete as to conversion costs. Direct Materials are added at the beginning of the process.

total amount of units the Machining Department accounted for during July-17800

total equivalent units for direct material costs for July- 11300

total equivalent units for conversion costs for July- 11.50

For the Machining Department for July, the cost of the beginning work in process inventory was $96,320. During July, additional costs incurred were direct materials $164,450; direct labor $80,000; and overhead $175,834. Prepare the second section of the production report showing the computation of the per units costs and use this section to answer the next three questions. What is the per unit direct material cost?- 18.30

per unit cost for conversion cost for July- 73.51

Answer 1

Components Element of costs	Equivalent Units	Cost/unit	Total Cost	Value
a) Opening Work in Progress
Opening Balance			96,320
Material	-	11.50
Labour	700	5.72	4,006
Overhead	700	12.58	8,804	109,130
b) Started and Completed
Material	12,600	11.50	144,900
Labour	12,600	5.72	72,103
Overhead	12,600	12.58	158,477	375,480
Total Output				484,610
c) Closing Work In progress
Material	1,700	11.50	19,550
Labour	680	5.72	3,891
Overhead	680	12.58	8,553	31,994
Total Costs ( 96320+ 420284)				516,604

Costs fo goods manufactured = $484,610

Costs of WIP Inventory = 31,994

Total product costs to be assigned for units completed and in inventory for machining department = $516,604

Statement of Equivalent Production
In		Out		Equivalent Units
Particulars	Quantity	Particulars	Quantity	Material		Labour & Overhead
				% Complete	Equivalent unit	% Complete	Equivalent unit
Opening WIP	3500	Opening WIP	3500	0	0	20	700
Input Introduced	14300	Started and completed	12600	100	12600	100	12600
		Closing WIP	1700	100	1700	40	680
					14300		13980

Element wise opening Work in progress % completion in the current period
Element	% Completion
	Previous period	Current period
Labour/Overhead	80	20
Statement of Cost
Element of Cost	Equivalent Units	Cost Incurred	Cost/Unit
Material	14300	164450	11.5
Labour	13980	80000	5.72
Overhead	13980	175834	12.58
		420284