Question

The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,300 units, 1/10 complete Materials $18,000 Units transferred out 54,900 Conversion costs 14,760 $32,760 Units started 50,600 Materials 216,604 Ending work in process 11,000 units, 1/5 complete Labor 67,500 Overhead 83,901 Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.) HEALTHY MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2017

Answer 1

Production cost report for the month
	Material	Conversion	Total
Cost accounted by	Value	Value	cost
Beginning inventory	0	37516	37516
Started and finished goods	169516	107891	277407
Ending inventory	47088	5994	53082
Total cost	216604	151401	368005

Working:

Reconciliation of units
Beginning inventory (1/10th complete)	15300
Started into production	50600
Total units to be accounted	65900
Accounted by
Transferred out	54900
Ending inventory (1/5th complete)	11000
Total units accounted	65900
Out of the unist transferred out.:
From opening inventory	15300
Started and finished during the month	39600
Total units transferred out	54900
Calculation of equivalent units
	Total	Material		Conversion
	Units	%	Eq.Units	%	Eq.Units
Beginning inventory (completed during the month)	15300	0	0	90%	13770
Started and finished	39600	100%	39600	100%	39600
Ending completed (Completed during the month)	11000	100%	11000	20%	2200
Total equivalent units			50600		55570
Cost per equivalent unit
	Material	conversion
Cost incurred:
Direct material	216604
Direct labor		67500
Overhead		83901
Total cost incured during the month	216604	151401
Equivalent units	50600	55570
Cost per equivalent unit	4.28	2.72
Value of stock at the end of the month
Finished goods	Material	Conversion	Total
Value of beginning inventory	18000	14760	32760
Cost incured during the month on beginning inventory	0	37516	37516
Cost incurred on started and finished inventory	169516	107891	277407
Total value of finished goods transferred out	187516	160167	347683
Ending inventory	47088	5994	53082