Question

In: Accounting

21. The Paul Manufacturing Company uses the process cost system and the average cost method.  The following...

21. The Paul Manufacturing Company uses the process cost system and the average cost method.  The following production data are for the month of April, 2016.

Production Costs

Work in process, beginning of month:

Materials

$ 4,350

Labor

3,200

Factory overhead

1,902

$ 9,452

Costs incurred during month:

Materials

$43,200

Labor

32,304

Factory overhead

19,020

94,524

Total

$103,976


Production Report

Units

In process, beginning of month

500

Finished and transferred during month

11,900

Work in process, end of month

1,200

Stage of completion

65%


Prepare a cost of production summary for the month.

Paul Manufacturing Company
Cost of Production Summary
For the Month Ended April 30, 2016

Cost of work in process, beginning of month:

   Materials

   Labor

   Factory overhead

$      

Cost of production for month:

   Materials

   Labor

   Factory overhead

Total costs to be accounted for

                 

Unit output for month:

   Finished and transferred to finished goods during month

   Equivalent units of work in process, end of month

    (                                                                    )

      Total equivalent production

Unit cost for month:

   Materials [(                                          ]

   Labor [(                                                ]

   Factory overhead [(                              ]

      Total

Inventory costs:

   Cost of goods finished and transferred to finished goods

     during month (11,900 × $8.20)

   Cost of work in process, end of month:

      Materials (                                        )

      Labor (                                             )

      Factory overhead (                           )

      Total production costs accounted for

Solutions

Expert Solution

Paul Manufacturing Company
Cost of Production Summary
For the Month Ended April 30, 2016
Cost of work in process, beginning of month:
Material 4350
Labour 3200
Factory overhead 1902 9452
Cost of production for month:
Material 43200
Labour 32304
Factory overhead 19020 94524
Total costs to be accounted for 103976
Unit output for month:
Finished and transferred to finished goods during month 11900
Equivalent units of work in process, end of month
(1200*65%) 780
Total equivalent production 12680
Unit cost for month:
Material (47550/12680) 3.75
Labour (35504/12680) 2.80
Overhead (20922/12680) 1.65
Total 8.20
Inventory Cost
Cost of goods finished and transferred to finished goods (11900*8.20) 97580
Cost of work in process, end of month:
Material (780*3.75) 2925
Labour (780*2.8) 2184
Overhead (780*1.65) 1287 6396
Total production costs accounted for 103976

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