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

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				2,600
Add: Units Started in Process				6,285
Total Units to account for:				8,885
UNITS TO BE ACCOUNTED FOR:
Units started and completed				5,885
Ending Work in Process				3,000
Total Units to be accounted for:				8,885
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units started and completed			100%	5,885	100%	5,885
Ending Work in Process			100%	3,000	38%	1,140
Total Equivalent units				8,885		7,025
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Beginning work in Process			7,250		6,050
Cost Added during May			23,600		28,600
Total Cost to account for:			30,850		34,650
Total Cost to account for:					65,500
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			30,850		34,650
Equivalent Units			8,885		7,025
Cost per Equivalent unit			3.47		4.93
TOTAL COST ACCOUNTED FOR:
Units started and Transferred out (5885 units)
			Equivalent unit	Cost per EU	Total Cost
Material			5,885	3.47	20420.95
Conversion Cost			5,885	4.93	29013.05
Total Cost of Units completed and transferred out:					49434
Ending Work in process (3,000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			3,000	3.47	10410
Conversison Cost			1,140	4.93	5620.2
Total cost of Ending Work in process:					16,030