Question

The following information was taken for the records of Hickory Manufacturing Company:

Beginning Work-in-Process Inventory	800
Units Completed	1,600
Ending Work-in-Process Inventory	400

Ending Work-in-Process Inventory was 100% complete as the materials and 20% complete as the conversion costs.

Cost Information:

	Materials	Conversion
Beginning Work-in-Process	$6,400	$4800
Added during period	9,600	12,000

Prepare a cost of production report based on the above information.

SHOW STEPS PLEASE

Answer 1

Cost of production
	Physical Units		Equivalent Units
			Materials	Conversion
Beginning Inventory	800
Started during the period	1200
To account for	2000
Completed and Transferred Out	1600		1600	1600
Ending Inventory	400		400	80
Units accounted for (Equivalent      units)	2000		2000	1680
%Ending Inventory complete			100%	20%
Cost per equivalent unit					Total
Beginning Inventory Costs			6,400.00	4,800.00	11,200.00
Costs added			9,600.00	12,000.00	21,600.00
Total costs to date			16,000.00	16,800.00	32,800.00
Equivalent units			2,000.00	1,680.00
Cost per equivalent unit			8.00	10.00
Assignment of costs					Total
Completed and transferred out			12,800.00	16,000.00	28,800.00
Ending Inventory			3,200.00	800.00	4,000.00
					32,800.00
		Production account
Particulars	Units	Amount	Particulars	Units	Amount
To balance b/d	800	11200	By units produced	1600	28800
To material cost	1200	9600	Work in progress	400	4,000.00
To converson cost		12000
	Total	32800		Total	32800