Question

Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning
of the production process and conversion costs are incurred uniformly. Production and cost
data for the month of June, 2016 are as follows.
	Production data				Units		Percent Complete
	Work in process units, June 1				2,425		61%
	Units started into production				6,190
	Work in process units, June 30				2,950		41%
	Cost data
	Work in process, June 1
	Materials			$7,250
	Coversion costs			5,950	$13,200
	Direct materials				24,200
	Direct labor				15,850
	Manufacturing overhead				12,750
Instructions:
Prepare a production cost report for the month of June, making sure to show equivalent
units of production for materials and conversion costs, unit costs of production for materials
and conversion costs, and the assignment of costs to units transferred out and in process at
the end of June.

Answer 1

Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv	Total Costs
Opening WIP	2,425.00	100%	2,425.00	2,425.00	100%	2,425.00
Units started and completed(6190 -2950)	3,240.00	100%	3,240.00	3,240.00	100%	3,240.00
ending WIP	2,950.00	100%	2,950.00	2,950.00	41%	1,209.50
Equivalent Units			8,615.00			6,874.50
Opening WIP costs			7,250.00			5,950.00	13,200.00
Current Month Costs			24,200.00			28,600.00	52,800.00
Total Costs			31,450.00			34,550.00	66,000.00
Cost per Equivalent units			3.65			5.03
Ending WIP Units			2,950.00			1,209.50
Cost of ending WIP			10,769.30			6,078.73	16,848.03
Units transferred			5,665.00			5,665.00
Cost of units transferred			20,680.70			28,471.27	49,151.97
Note - Assumed Weighted Average Method in absence of information