Question

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2017 are presented below.

Production Data		June
Beginning work in process units		0
Units started into production		30,360
Ending work in process units		2,760
Percent complete—ending inventory		40	%

Cost Data
Materials		$ 273,240
Labor		73,968
Overhead		155,664
Total		$ 502,872

Answer 1

Solution:

Computation of Equivalent unit of Production - Molding Department
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out (30360-2760)	27600	27600	27600
Closing WIP:	2760
Material (100%)		2760
Conversion (40%)			1104
Equivalent units of production	30360	30360	28704

Computation of Cost per equivalent unit of Production - Weighted Average - Molding Department
Particulars	Material	Conversion
Opening WIP	$0.00	$0.00
Cost Added during June	$273,240.00	$229,632.00
Total cost to be accounted for	$273,240.00	$229,632.00
Equivalent units of production	30360	28704
Cost per Equivalent unit	$9.00	$8.00

Computation of Cost of ending WIP and units completed & transferred out - Weighted Average - Molding Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	2760	1104
Cost per equivalent unit	$9.00	$8.00
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$24,840.00	$8,832.00	$33,672.00
Units completed and transferred	27600	27600
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$248,400.00	$220,800.00	$469,200.00

Cost Reconciliation - Weighted Average
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$0.00
Cost added to production	$502,872.00
Total Cost to be accounted for	$502,872.00
Costs accounted for as follows:
Cost of unit transferred out	$469,200.00
Ending WIP:
Material	$24,840.00
Converison	$8,832.00
Total cost accounted for	$502,872.00