Question

Exercise 21-6 The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs 1. Transferred out 12,000 units. Beginning work in process $0 2. Started 3,000 units that are 60% Materials 45,000 complete as to conversion Labor 16,200 costs and 100% complete as Manufacturing overhead 18,300 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production LINK TO TEXT LINK TO TEXT Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials $ Conversion costs $ LINK TO TEXT LINK TO TEXT 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. 1,225.) Cost Reconciliation Costs accounted for Transferred out $ Work in process, July 31 Materials $ Conversion costs Total costs $ LINK TO TEXT LINK TO TEXT

Answer 1

Answer:

(1)

	Material	Conversion
Equivalent Unit of production	15000	13800

Working notes for the above answer is as under

	Unit	Material	Conversion
Transferred Out	12000	12000	12000
Add: Work in process July
3000x100%	3000	3000
3000x60%			1800
Equivalent Unit of production	15000	15000	13800

______________________________________________________________________

(2)

	Martial	Conversion
Cost incurred during the period (a)	45000	34500
Equivalent Unit of production (b)	15000	13800
Equivalent Cost per unit (a/b)	3	2.50

.

_______________________________________

(3)

Cost Reconciliation         

Cost accounted for transferred out (12000*(3+2.5)	66000
work In process July ,31
Material (3000*3)	9000
Conversion (1800*2.5)	4500
Total Cost	79500