Question

Problem 4-47A Jessica Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred evenly. Jessica uses the FIFO method to calculate equivalent units. Production and cost data for the month of August are as follows: Production Data—Hockey pucks Units Percent Complete Work in process units, August 1 680 70% Units started into production 1,770 Work in process units, August 31 850 30% Cost Data—Hockey pucks Work in process, August 1 $1,120 Direct materials 1,770 Direct labour 1,100 Manufacturing overhead 1,106 Production Data—Soccer balls Work in process units, August 1 350 90% Units started into production 2,050 Work in process units, August 31 250 60% Cost Data—Soccer balls Work in process, August 1 $470 Direct materials 2,665 Direct labour 1,050 Manufacturing overhead 1,134

Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, e.g. 5,275. Round per unit costs to the 3 decimal places, e.g. 15.253.) 1. The equivalent units of production for materials and conversion costs. 2. The unit costs of production for materials and conversion costs. 3. The assignment of costs to units transferred out and to work in process at the end of the accounting period. Prepare a production cost report for the month of August for the hockey pucks only. (Round unit cost to 3 decimal places, e.g. 15.251 and other answers to to the nearest whole dollar, e.g. 5,275.)

Answer 1

1. Total Equivalent Unit for Material= 1,770; Total Equivalent Unit for Conversion= 1,379;

2.Unit costs of Production for Material=$1.00; Unit costs of Production for Conversion=$1.60;

3. Costs to units transferred out=$3,976; Costs to Ending WIP= $1,120.

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