Question

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,060 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $39,133; labor $21,100; overhead $40,103. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)

Answer 1

Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv	Total
Opening WIP	-	0%	-	-	0%	-
Units started and completed	7,060.00	100%	7,060.00	7,060.00	100%	7,060.00
ending WIP	3,000.00	100%	3,000.00	3,000.00	20%	600.00
Equivalent Units			10,060.00			7,660.00
Current Month Costs			39,133.00			61,203.00	100,336.00
Cost per Equivalent units			3.89			7.99
Ending WIP Units			3,000.00			600.00
Cost of ending WIP			11,669.88			4,793.97	16,463.85
Units transferred			7,060.00			7,060.00
Cost of units transferred			27,463.12			56,409.03	83,872.15
Coststo Account for:
Opening WIP	-
CostsTransferred in	100,336.00
Total Coststo Account for	100,336.00
CostsAccounted for
Costscompleted and Transferred Out	83,872.15
Ending WIP	16,463.85
Total Costsaccounted for	100,336.00