Question

Production data:

Units (gallons) in process, April 1: materials 100% complete;

labor and overhead 60% complete . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Units (gallons) started into production during April . . . . . . . . . . . . . . . . . . 4 20,000

Units (gallons) completed and transferred to the Finishing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,000

Units (gallons) in process, April 30: materials 50% complete; labor and overhead 25% complete . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Cost data: Work in process inventory, April 1: Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 92,000

Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000

Total cost of work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000

Cost added during April: Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 851,000

Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000

Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 665,000

Total cost added during April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,846,000

a.Prepare a cost reconciliation report for april

Answer 1

Cost reconciliation
Costs to be accounted for
Cost of beginning work in process inventory		150000
Costs added during the month		1846000
Total costs		1996000
Costs accounted for
Cost of units transferred out		1850000
Costs of ending work in process		146000
Total costs		1996000

Workings:

	Gallons	Direct Materials	Labor	Overhead
UNITS
Units to account for:
Beginning work in process	30000
Transferred in	420000
Total units to account for	450000
Units accounted for
Completed and transferred out	370000	370000	370000	370000
Ending work in process	80000	40000	20000	20000
Equivalent units	450000	410000	390000	390000
	Cost per equivalent unit	Direct Materials	Labor	Overhead
	Work in process beginning	92000	21000	37000
	Costs added during June	851000	330000	665000
	Total costs for January in roasting Department	943000	351000	702000
	Total equivalent units	410000	390000	390000
	Cost per equivalent unit	2.30	0.90	1.80
	Direct Materials	Labor	Overhead	Total
Cost of goods transferred	851000	333000	666000	1850000
	[370000*2.3]	[370000*0.9]	[370000*1.8]
	Direct Materials	Conversion		Total
Work in process	92000	18000	36000	146000
	[40000*2.3]	[20000*0.9]	[20000*1.8]