Question

Exercise 21-13 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 15,000 units, 1/10 complete Materials $18,000 Units transferred out 55,000 Conversion costs 14,175 $32,175 Units started 51,000 Materials 180,000 Ending work in process 11,000 units, 1/5 complete Labor 67,380 Overhead 61,445 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 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, February 1 Started into production Total units Units accounted for Transferred out Work in process, February 28 Total units Costs Materials Conversion Costs Total Unit costs Total Costs $ $ $ Equivalent units Unit costs $ $ $ Costs to be accounted for Work in process, February 1 $ Started into production Total costs $ Cost Reconciliation Schedule Costs accounted for Transferred out $ Work in process, February 28 Materials $ Conversion costs Total costs $ LINK TO TEXT LINK TO TEXT

Answer 1

Solution:

Reconciliation of Physical units
Particulars	Physical Units	Particulars	Physical Units
Beginning units	15000	Unit Completed	55000
Unit started	51000	Ending Units	11000
Total Units	66000	Total Units	66000

Computation of Equivalent unit of Production - Weighted Average
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out	55000	55000	55000
Closing WIP:	11000
Material (100%)		11000
Conversion (1/5)			2200
Equivalent units of production	66000	66000	57200

Computation of Cost per equivalent unit of Production - Weighted Average
Particulars	Material	Conversion
Opening WIP	$18,000.00	$14,175.00
Cost Added during February	$180,000.00	$128,825.00
Total cost to be accounted for	$198,000.00	$143,000.00
Equivalent units of production	66000	57200
Cost per Equivalent unit	$3.00	$2.50

Computation of Cost of ending WIP and units completed & transferred out - Weighted Average
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	11000	2200
Cost per equivalent unit	$3.00	$2.50
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$33,000	$5,500	$38,500
Units completed and transferred	55000	55000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$165,000	$137,500	$302,500

Cost Reconciliation - Weighted Average
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$32,175.00
Cost added to production	$308,825.00
Total Cost to be accounted for	$341,000.00
Costs accounted for as follows:
Cost of unit transferred out	$302,500
Ending WIP:
Material	$33,000
Converison	$5,500
Total cost accounted for	$341,000