Question

M&M Company's inventory on March 1 and the costs charged to Work in Process—Dipping Department during March are as follows:

Beginning work in process, 12,000 units, 60% completed	$ 62,400
From Chocolate Mixing Department, 55,000 units (direct materials)	115,500
Direct labor incurred	384,915
Factory overhead incurred	138,000

During March, all direct materials were transferred from the Mixing Department, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units that were 70% completed. Inventories are costed by the first-in, first-out method.

Prepare a cost of production report for March. Round unit cost data to four decimal places and total cost to nearest cent.  You do not need to enter dollar signs ($). Be sure to double-check your answers. A typo will be marked as incorrect.

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M&M Company
	Cost of Production Report - Dipping Department
	For the Month Ended March 31
	Unit Information
Units charged to production:
Inventory in Process, March 1
Received from Mixing Dept
Total units accounted for by Dipping Department

Units to be assigned Cost:

	Whole Units	Direct Materials (Equivalent Units)	Conversion Costs (Equivalent Units)
Inventory in Process, March 1 (60% Complete)
Started and Completed in March
Transferred to Finished Goods in March
Inventory in Process, March 31 (70% Complete)
Total units to be assigned costs

Cost Information:

	Direct Materials	Conversion
Costs per equivalent unit:
Total costs for March in Dipping Department	$	$
Total equivalent units
Cost per equivalent unit	$	$

Costs assigned to Production

			Total Costs
Inventory in process, March 1			$
Costs incurred in March
Total costs accounted for by Dipping Department			$

Costs Allocated to completed and partially completed units:

	Direct Materials Cost	Conversion Costs	Total Costs
Inventory in process, March 1, balance			$
To complete inventory in process, March 1	$	$
Started and completed in March
Transferred to finished goods in March			$
Inventory in process, March 31
Total costs assigned by Dipping Department			$

Answer 1

Prepare a cost of production report for March. Round unit cost data to four decimal places and total cost to nearest cent.  You do not need to enter dollar signs ($). Be sure to double-check your answers. A typo will be marked as incorrect.

​

M&M Company
	Cost of Production Report - Dipping Department
	For the Month Ended March 31
	Unit Information
Units charged to production:
Inventory in Process, March 1	12000
Received from Mixing Dept	55000
Total units accounted for by Dipping Department	67000

Units to be assigned Cost:

	Whole Units	Direct Materials (Equivalent Units)	Conversion Costs (Equivalent Units)
Inventory in Process, March 1 (60% Complete)	12000	0	12000*40% = 4800
Started and Completed in March	49000	49000	49000
Transferred to Finished Goods in March	61000	49000	53800
Inventory in Process, March 31 (70% Complete)	6000	6000	6000*70% = 4200
Total units to be assigned costs	67000	55000	58000

Cost Information:

	Direct Materials	Conversion
Costs per equivalent unit:
Total costs for March in Dipping Department	$115500	$522915
Total equivalent units	55000	58000
Cost per equivalent unit	$2.10	$9.0158

Costs assigned to Production

			Total Costs
Inventory in process, March 1			$62400
Costs incurred in March			638415
Total costs accounted for by Dipping Department			$700815

Costs Allocated to completed and partially completed units:

	Direct Materials Cost	Conversion Costs	Total Costs
Inventory in process, March 1, balance			$62400
To complete inventory in process, March 1	$0	$43276	43276
Started and completed in March	102900	441774	544674
Transferred to finished goods in March	102900	485050	$587950
Inventory in process, March 31	12600	37866	50466
Total costs assigned by Dipping Department	115500	522916	638416