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Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at...

Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at the beginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of December follow:

Units

Completion

Cost

Work in process inventory:
December 1 12,000 60% $140,400
December 31 5,000 40% ?
Started in December: 14,000
Direct materials cost 106,400
Conversion cost 70,310
Completed in December 21,000 ?
Required:
Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter “0”.

Prepare Austin's Department A cost of production report for December. Round cost per equivalent unit to two decimal places and the other answers to the nearest dollar. If an answer is zero, enter “0”.

Austin Company
Cost of Production Report—Department A
For the Month Ended December 31
UNITS Whole Units Equivalent Units
Direct Materials Conversion
Units charged to production:
Inventory in process, Dec. 1
Received from materials storeroom
Total units accounted for by Dept. A
Units to be assigned costs:
Inventory in process, Dec. 1 (60% completed)
Started and completed in December
Transferred to Dept. B in December
Inventory in process, Dec. 31 (40% complete)
Total units to be assigned costs
COSTS Costs
Direct Materials Conversion Total
Costs per equivalent unit:
Total costs for December in Dept A
Total equivalent units ÷ ÷
Cost per equivalent unit
Costs charged to production:
Inventory in process, Dec. 1
Costs incurred in December
Total costs accounted for by Dept. A
Costs allocated to completed and
partially completed units:
Inventory in process, Dec. 1, balance
To complete inventory in process, Dec. 1
Started and completed in December
Transferred to finished goods in December
Inventory in process, Dec. 31
Total costs assigned by Dept. A

Solutions

Expert Solution

Austin Company
Cost of Production Report—Department A
For the Month Ended December 31
UNITS Whole Units Equivalent Units
Direct Materials Conversion
Units charged to production:
Inventory in process, Dec. 1 12000
Received from materials storeroom 14000
Total units accounted for by Dept. A 26000
Units to be assigned costs:
Inventory in process, Dec. 1 (60% completed) 12000 0 4800
Started and completed in December 9000 9000 9000
Transferred to Dept. B in December 21000 9000 13800
Inventory in process, Dec. 31 (40% complete) 5000 5000 2000
Total units to be assigned costs 26000 14000 15800
COSTS Costs
Direct Materials Conversion Total
Costs per equivalent unit:
Total costs for December in Dept A 106400 70310 176710
Total equivalent units 14000 15800
Cost per equivalent unit 7.60 4.45
Costs charged to production:
Inventory in process, Dec. 1 140400
Costs incurred in December 106400 70310 176710
Total costs accounted for by Dept. A 317110
Costs allocated to completed and
partially completed units:
Inventory in process, Dec. 1, balance 140400
To complete inventory in process, Dec. 1 0 21360 21360
Started and completed in December 68400 40050 108450
Transferred to finished goods in December 270210
Inventory in process, Dec. 31 38000 8900 46900
Total costs assigned by Dept. A 317110

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