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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

UNITS TO ACCOUNT FOR:
Beginning Work in Process units 12,000
Add: Units Started in Process 14,000
Total Units to account for: 26,000
Equivalent Units:
Whole units Material Cost Conversion
% Completion Units % Completion Units
Units completed from Beg. WIP 12000 0% 0 40% 4,800
Units started and completed 9000 100% 9,000 100% 9,000
Transferred to B deptt 21000 9,000 13,800
Ending Work in Process 5000 100% 5,000 40% 2,000
Total Equivalent units 14,000 15,800
TOTAL COST TO ACCOUNT FOR:
COST PER EQUIVALENT UNIT:
Material Conversion
Total cost added during the year 106,400 70,310
Equivalent Units 14,000 15,800
Cost per Equivalent unit 7.6 4.45
Cost charged to production: Material Convesion Total
Inventory in Beg. 140400
Current cocst of manufacture 176710
Total cost to be accounted for: 317110
Cost allocated to completed and partially completed units:
Inventory in Beg. 140400
Cost to complete 0 21360 21360
Started and completed 68400 40050 108450
Transfrred to Molding 270210
Inveentory in Mar31 38000 8900 46900
Total cost assigned 317110

ekkarill92 answered 1 year ago
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