Question

Coronado Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2020 are as follows.

Production Data—Basketballs				Units		Percent Complete
Work in process units, July 1				560		60	%
Units started into production				1,430
Work in process units, July 31				500		40	%
Cost Data—Basketballs
Work in process, July 1
Materials		$700
Conversion costs		550		$1,250
Direct materials				2,882
Direct labor				1,072
Manufacturing overhead				1,420

Calculate the equivalent units of production for materials and conversion costs.

		Materials		Conversion Costs
Equivalent Units		enter a number of units		enter a number of units

  

  

Calculate the unit costs of production for materials and conversion costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

		Materials		Conversion Costs
Cost per unit		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places

  

  

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period.

Costs accounted for:
Transferred out		$enter a dollar amount
Work in process, July 31
Materials	$enter a dollar amount
Conversion costs	enter a dollar amount	enter a subtotal of the two previous amounts
Total costs		$enter a total amount

  

  

Prepare a production cost report for the month of July for the basketballs. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 2,250.)

CORONADO COMPANY Basketball Department Production Cost Report For the Month Ended July 31, 2020
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, July 1		enter a number of units
Started into production		enter a number of units
Total units		enter a total number of units
Units accounted for
Transferred out		enter a number of units		enter a number of units		enter a number of units
Work in process, July 31		enter a number of units		enter a number of units		enter a number of units
Total units		enter a total number of units		enter a total number of units		enter a total number of units
Costs				Materials		Conversion Costs		Total
Unit costs
Total costs				$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places
Equivalent units				enter a number of units		enter a number of units
Unit costs				$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places
Costs to be accounted for
Work in process, July 1								$enter a dollar amount rounded to 0 decimal places
Started into production								enter a dollar amount rounded to 0 decimal places
Total costs								$enter a total of the two previous amounts
Cost Reconciliation Schedule
Costs accounted for
Transferred out								$enter a dollar amount rounded to 0 decimal places
Work in process, July 31
Materials						$enter a dollar amount rounded to 0 decimal places
Conversion costs						enter a dollar amount rounded to 0 decimal places		enter a subtotal of the two previous amounts
Total costs

Answer 1

Coronado Company
Production Cost Report-(Weighted Avg Method)
For the month ending July
a)Input/Output Reconciliation(Summery of Quantity schedule)
Units be accounted for	Units
Units in beginning WIP Inventory	560
Units started/transferred in during the period	1,430
Total units be accounted for	1,990
Units transferred out	1,490
Units in ending WIP Inventory	500
Total units accounted for	1,990
1) Equivalent units calculations- Weighted Avg Method
	Material	Conversion Cost
Transferred out (A)	1,490.00	1,490.00
Units of ending WIP (B)	500.00	500.00
Percentage of completion of ending WIP (C)	40%	40%
Equivalent units in ending WIP (D=B×C)	200.00	200.00
Total equivalent units (A+D)	1,690.00	1,690.00
2) Calculation of Cost per Equivalent Unit
	Material	Conversion Cost	Total
Cost in beginning WIP Inventory (A)	$            700.00	$                 550.00	$             1,250.00
Cost added during the period (B)	$        2,882.00	$             2,492.00	$             5,374.00
Cost be accounted for(C=A+B)	$        3,582.00	$             3,042.00	$             6,624.00
Total Equivalent unit be accounted for (D)	1,690.00	1,690.00
Cost per Equivalent Unit (E=C/D)	2.12	1.80	3.92
3) & 4) Assignment of Cost the Units transferred out & Units in ending WIP
	Material	Conversion Cost	Total
Cost assigned the units transferred out (D)= {Cost per Equivalent unit* Equivalent unit}	$              3,158	$                   2,682	$                   5,840
Cost assigned the ending WIP Inventory (E)= {Cost per Equivalent unit* Equivalent unit}	$                  424	$                       360	$                       784
Total Cost accounted for			$             6,624.00
5)Summery of Cost be accounted for and Accounted for as
COST SCHEDULE
Direct materials	$                  700
Conversion costs	$                  550
As at 1 July (A)	$              1,250
Costs-transferred in (B)	$                     -
Direct materials	$              2,882
Conversion costs	$              2,492
Costs added (C)	$              5,374
Total costs be accounted for (A+B+C)	$              6,624
Transferred finished goods (D)	$              5,840
Costs transferred-in WIP
Direct materials	$                  424
Conversion costs	$                  360
As at 31 july (E)	$                  784
Total costs accounted for (D+E)	$              6,624
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