Question

Craft 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 finished 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. Production Data June Beginning work in process units 0 Units started into production 28,380 Ending work in process units 2,580 Percent complete—ending inventory 40 % Cost Data Materials $255,420 Labor 69,144 Overhead 145,512     Total $470,076

a) Prepare a schedule showing physical units of production. Physical units Units to be accounted for    Work in process, June 1    Started into production       Total units Units accounted for    Transferred out    Work in process, June 30       Total units

b) Determine the equivalent units of production for materials and conversion costs.

Total equivalent units: Materials______ Conversion Costs________

c) Compute the unit costs of production.

Unit Costs: Materials $_____Conversion Costs$______ Total Unit Cost $______

d) Determine the costs to be assigned to the units transferred out and in process for June.

Transferred out $________

Work in process, June 30 $_______

e) Prepare a production cost report for the Molding Department for the month of June.

                                         Craft COMPANY
                                     Molding Department
                                   Production Cost Report
                           For the Month Ended June 30, 2020
                                                                      Equivalent Units

Quantities                   Physical Units          Materials          Conversion Costs

Units to be accounted for
Work in process, June 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, June 30
Total units

Costs

Materials

Conversion Costs

Total

Unit costs
Total Costs
Equivalent units
Unit costs
Costs to be accounted for
Work in process, June 1
Started into production
Total costs

Cost Reconciliation Schedule
Costs accounted for
Transferred out
Work in process, June 30
Materials
Conversion costs
Total costs

Thank you

Answer 1

a)

	Physical units
Units to account for
Work in Process Beginning	0
Started during the period	28380
Total units to account for	28380
Units Accounted for
Completed and transferred	25800
Work in Process Ending	2580
Total Units Accounted for	28380

b)
Equivalent units
Material = 25800 + 2580 x 100% = 28380 units
Conversion = 25800 + 2580 x 40% = 26832 units

c)

	Material	Conversion	Total
Cost of Beginning Work in Process	$                   -	$                   -	$                      -
Cost added during the period	$        255,420	$        214,656	$           470,076
Total Cost to account for	$       255,420	$       214,656	$           470,076
Equivalent units of Production	28380	26832
Cost per equivalent unit	$              9.00	$              8.00	$               17.00

d)
Transferred out = $438600
Ending Inventory = $31476

e)

	Physical units	Material	Conversion
Units to account for
Work in Process Beginning	0
Started during the period	28380
Total units to account for	28380
Units Accounted for
Completed and transferred	25800	25800	25800
Work in Process Ending	2580	2580	1032
Total Units Accounted for	28380
Equivalent units		28380	26832
	Material	Conversion	Total
Cost of Beginning Work in Process	$                   -	$                   -	$                      -
Cost added during the period	$        255,420	$        214,656	$           470,076
Total Cost to account for	$       255,420	$       214,656	$           470,076
Equivalent units of Production	28380	26832
Cost per equivalent unit	$              9.00	$              8.00	$               17.00
	Material	Conversion	Total
Units Completed and transferred out
Units transferred to next department	25800	25800
Cost per equivalent unit	$              9.00	$              8.00
Cost of units transferred out	$       232,200	$       206,400	$           438,600
	Material	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	2580	1032
Cost per equivalent unit	$              9.00	$              8.00
Cost of Ending work in Process Inventory	$          23,220	$            8,256	$             31,476
Total Costs Accounted for	$       255,420	$       214,656	$           470,076
Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory	$                   -
Costs added to the production during the year	$        470,076
Total Costs to be accounted for	$       470,076
Cost of Ending work in Process Inventory	$          31,476
Cost of units transferred out	$        438,600
Total Costs accounted for	$       470,076