Question

Consider the following information from Manufacturing Inc., then see the instructions that
follow.
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				2,600		61%
	Units started into production				6,285
	Work in process units, June 30				3,000		38%
	Cost data
	Work in process, June 1
	Materials			$7,250
	Coversion costs			6,050	$13,300
	Direct materials				23,600
	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.
THIS ASSIGNMENT MUST BE COMPLETED IN EXCEL. You should develop an efficient and
customizable production cost report, using formulas whenever possible instead of keyed in
values. No numeric values except the ones shown above should need to be keyed in.

Answer 1

Data Entry Section
Unit Information		Percentage Complete
	Units	Direct Materials	Conversion Costs (Labour + overhead)
Units in the beginning WIP Inventory	2,600	N.A.	61%
Units started and completed during the period (2600+6285-3000)	5,885	100%	100%
Units started and partially completed during the period	3,000	100%	38%
Cost Information		Direct Materials $	Conversion Costs (Labour + overhead) $
Costs in Beginning WIP		7,250	6,050
Costs incurred during the period		23,600	28,600
Manufacturing Inc.
Production Cost Report for the month ending June 2016
1. Summary of Physical Units and Equvalent Units
Units to be accounted for	Units
Units in the beginning WIP Inventory	2,600
Units started during the period	6,285
Total Units to be Accounted for	8,885
Units accounted for		Equivalent Units
	Units	Direct Materials $	Conversion Costs (Labour + overhead) $
Opening Inventory	2,600	-	1,014
Units Completed & Transferred out (6285-3000)	3,285	3,285	3,285
Closing Inventory	3,000	3,000	1,140
Total Units Accounted for	8,885	6,285	5,439
2. Summary of costs to be accounted for
Costs to be accounted for	Direct Materials $	Conversion Costs (Labour + overhead) $	Total
Costs in the beginning WIP Inventory	7250	6050	13300
Units started during the period	23600	28600	52200
Total costs to be Accounted for	30850	34650	65500
3. Calculation of cost per equivalent unit
	Direct Materials $	Conversion Costs (Labour + overhead) $	Total
Total costs to be Accounted for	30,850	34,650
Total equivalent Units to be Accounted for	6,285	5,439
Cost per Equivalent unit	4.91	6.37	11.28
4. Assign costs to units finished and work in process
	Direct Materials $	Conversion Costs (Labour + overhead) $	Total
Costs assigned to units completed	16,124.46	27,387.45	43,511.91
Costs assigned to units ending work in process	14,725.54	7,262.55	21,988.09
Total Costs Accounted for			65,500.00