Question

The Landing Department of Gross Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.

Production: 7,360 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.

Manufacturing costs: Materials $39,368; labor $20,700; overhead $42,980.

Prepare a production cost report.

                                        Gross Furniture Company
                                           Landing Department
                                         Production Cost Report
                               For the Month Ended March 31, 2020

                                                                        Equivalent Units

Quantities                      Physical Units               Materials                ConversionCosts

Units to be accounted for

Work in process, March 1

Started into production

Total units

Units accounted for

   Transferred out

Work in process, March 31

Total units

Costs                                                 Materials                   Conversion Costs                   Total

Unit costs

   Total Costs

Equivalent units

Unit costs

Costs to be accounted for

   Work in process, March 1

Started into production

Total costs

Cost Reconciliation Schedule

Costs accounted for

   Transferred out

Work in process, March 31

      Materials

Conversion costs

Total costs

Answer 1

Landing Department Production Cost Report
	Physical units	Materials	Conversion costs
Units to be accounted for:
Work in process, March 1	0
Started into production ( 7,360 + 3,000)	10,360
Total units	10,360
Units accounted for:
Transferred out	7,360	7,360	7,360
Work in process, March 31	3,000	3,000	600 (3,000 x 20 % )
Total units	10,360	10,360	7,960
		Materials	Conversion costs	Total
Unit costs
Total costs		$ 39,368	$ 63,680 ( $ 20,700 + $ 42,980 )	$ 103,048
Equivalent units		10,360	7,960
Unit costs		$ 3.80	$ 8	$ 11.80
Costs to be accounted for:
Work in process, March 1			0
Started into production			$ 103,048
Total Costs			$ 103,048
Cost Reconcilation Schedule
Costs accounted for:
Transferred out			$ 86,848 ( 7,360 x $ 11.80 )
Work in process, March 31
Materials ( 3,000 x $ 3.80 )		$ 11,400
Conversion costs (600 x $ 8 )		$ 4,800	$ 16,200
Total Costs			$ 103,048