Question

ost of Production Report: No Beginning Inventories
Howell Paving Company manufactures asphalt paving materials for highway construction through a one-step process in which all materials are added at the beginning of the process. During April 2017, the company accumulated the following data in its process costing system:

Production data
Work-in-process, 4/1/17		0 tons
Raw materials transferred to processing		25,000 tons
Work-in-process, 4/30/17 (75% converted)		5,000 tons
Cost data
Raw materials transferred to processing		$975,000
Conversion costs
Direct labor cost incurred		$71,250
Manufacturing overhead applied		?

Manufacturing overhead is applied at the rate of $6 per equivalent unit (ton) processed.

Prepare a cost of production report for April.

Howell Paving Company
Cost of Production Report
For the Month Ending April 30, 2017
Equivalent units in process:	Materials	Conversion	Total
Units completed	Answer	Answer
Plus equivalent units in ending inventory	Answer	Answer
Equivalent units in process	Answer	Answer
Total cost to accounted for and cost per
equivalent unit in process:
Beginning work-in-process	Answer	Answer	Answer
Current costs	Answer	Answer	Answer
Total cost in process	Answer	Answer	Answer
Equivalent units in process	Answer	Answer
Cost per equivalent unit in process	Answer	Answer	Answer
Accounting for total costs:
Transferred out			Answer
Ending work-in-process:
Materials		Answer
Conversion		Answer	Answer
Total cost accounted for			Answer

Answer 1

Solution:

Howell Paving CompanyCost of Production Report
For the Month Ending April 30, 2017
Equivalent units in process:	Materials	Conversion	Total
Units completed	20000	20000
Plus equivalent units in ending inventory	5000	3750
Equivalent units in process	25000	23750
Total cost to accounted for and cost perequivalent unit in process:
Beginning Work in Process	$0.00	$0.00	$0.00
Current costs	$975,000.00	$213,750.00	$1,188,750.00
Total cost in proces	$975,000.00	$213,750.00	$1,188,750.00
Equivalent units in process	25000	23750
Cost per equivalent unit in process	$39.00	$9.00	$48.00
Accounting for total costs:
Transferred out	$780,000.00	$180,000.00	$960,000.00
Ending work in process:
Materials	$195,000.00		$195,000.00
Conversion		$33,750.00	$33,750.00
Total cost accounted for			$1,188,750.00