Question

P3.2A (LO 3, 4), AP Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the fi nished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Journalize transactions. Complete four steps necessary to prepare a production cost report. Production Data June Beginning work in process units –0– Units started into production 22,000 Ending work in process units 2,000 Percent complete—ending inventory 40% Cost Data Materials $198,000 Labor 53,600 Overhead 112,800 Total $364,400

Instructions a. Prepare a schedule showing physical units of production. b. Determine the equivalent units of production for materials and conversion costs. c. Compute the unit costs of production. d. Determine the costs to be assigned to the units transferred out and in process for June. e. Prepare a production cost report for the Molding Department for the month of June.

Answer 1

a
Physical units
Units to be accounted for
Work in process, June 1	0
Started into production	22000
Total units	22000
Units accounted for
Transferred out	20000
Work in process, June 30	2000
Total units	22000
b
	Materials	Conversion Costs
Equivalent units	22000	20800
c
	Materials	Conversion Costs	Total unit cost
Unit costs	9.00	8.00	17.00
d
Transferred out	340000
Work in process, June 30	24400
e
ROSENTHAL COMPANY
Molding Department
Production Cost Report
For the Month Ended June 30, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, June 1	0
Started into production	22000
Total units	22000
Units accounted for
Transferred out	20000	20000	20000
Work in process, June 30	2000	2000	800
Total units	22000	22000	20800
Costs		Materials	Conversion Costs	Total
Unit costs:
Total costs		198000	166400	364400
Equivalent units		22000	20800
Unit costs		9.00	8.00	17.00
Costs to be accounted for
Work in process, June 1				0
Started into production				364400
Total costs				364400
Cost Reconciliation Schedule
Costs accounted for
Transferred out				340000	=20000*17
Work in process, June 30
Materials			18000		=2000*9
Conversion costs			6400	24400	=800*8
Total costs				364400