Question

Problem 2 Jirachi Company manufactures adorable and delicious Pikachu cookies. The cookies go through several departments including –mixing, baking, and packaging. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the Mixing Department is presented below. Prepare the production cost report for May. Round to whole dollars. Production Data –May Work in process units, May 1 0 Units started into production 21,000 Work in process units, May 31 4,000 Work in process percent complete 50% Cost Data -May Work in process, May 1 $0 Materials 260,000 Labor 184,600 Overhead 94,000

Answer 1

JIRACHI COMPANY
Mixing Department
Production Cost report
For the Monthe Ended November 30,2020
		Equivalent units
Quantities	Physical units	Materials	Conversion Costs
Units to be accounted for:
Work in process, May 1	0
Started into production	21,000
Total units	21,000
Units accounted for:
Transferred out	17,000	17,000	17,000
Work in process, May 31	4,000	4,000	2,000
Total units	21,000	21,000	19,000
Costs		Materials	Conversion Costs	Total
Untis costs:
Total costs		$260,000	$278,600	$538,600
÷ Equivalent units		21,000	19,000
= Unit costs		$12.38	$14.66	$27.04
Cost to be accounted for:
Work in process, November 1				$0
Started into production				$538,600
Total costs				$538,600
Costs Reconciliation Schedule
Costs accounted for:
Transferred out				$459,680
Work in process, May 31
Materials			$49,520
Conversion costs			$29,320	$78,840
Total costs				$538,520*

*Difference $60 (538600-538520) due to fractions.

Calculations:

Beginning work in process	0
Units started into production	21,000
Ending work in process	-4,000
Units completed and transferred out	17,000

.

	Materials	Conversion
Units completed and transferred out	17,000	17,000
Ending work in process:
17,000 x 100%	4,000
4,000 x 50%		2,000
Total equivalent units	21,000	19,000

.

Costs Accounted for:
Transferred out [17000*$27.04]		$459,680
Work in process, May 31:
Materials [4000 x $12.38]	$49,520
Conversion costs [2000 x $14.66]	$29,320	$78,840
Total costs		$538,520