Question

Toy Truck Corporation produces children's toy trucks using a continuous production process. All direct materials are added at the beginning of the process. In November, the beginning work in process inventory was 420 units, which were 50 percent complete; the ending balance was 400 units, which were 70 percent complete. During November, 15,000 units were started into production. The Work in Process Inventory account had a beginning balance of $937 for direct materials costs and $370 for conversion costs. In the course of the month, $35,300 of direct materials were added to the process, and $31,689 of conversion costs were assigned.

Using the data given and assuming that the company uses the average costing method, prepare a process cost report that computes the equivalent units for November, the product unit cost for the toys, and the ending balance in the Work in Process Inventory account. Round cost per equivalent unit to the five decimal places. For the percentages, do not enter the percent sign. For example, 60% would be entered as 60.

Answer 1

Toy Truck Corporation
Process Cost Report
For the Month Ended November 30
Unit Information
Units to account for during production:
Inventory in process, November 1	420
Started into production	15000
Total units accounted for	15420
Units to be assigned costs:
	Whole Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Transferred to finished goods in November	15020	100	15020	100	15020
Inventory in process, November 30	400	100	400	70	280
Total units to be assigned costs	15420		15420		15300
Cost Information
Costs per equivalent unit:	Costs
	Material	Conversion	Total
Total costs for November $	36237	32059	68296
Total equivalent units	15420	15300
Cost per equivalent unit $	2.35000	2.09536	4.44536
Costs assigned to production:
Inventory in process, November 1	1307
Costs incurred in November	66989
Total costs accounted for $	68296
Costs allocated to completed and partially completed units:
Transferred to finished goods in November $ (15020 x $4.44536)	66769
Inventory in process, November 30 [(400 x $2.35) + (280 x $2.09536)]	1527
Total costs assigned $	68296