Question

Process Costing Problem

Stein Industries manufactures outdoor chairs in its Plant #2. Stein began July with 500 units in Beginning Work in Process. A total of 18,000 units were started into production. Ending WIP was 500 units that were 80% complete. July Cost Data:

Work in Process July 1	$15000
Materials	288,000
Labor	133900
Manufacturing Overhead	96,700
Total	$533,600

Units Table	Whole Units
Beginning WIP
Units Started
Units to Acct For		Equivalent Units
Units Transferred
Ending WIP
Units Acct'd For

Total Costs	$
Equivalent Units	EU
Cost Per Unit	$

Cost of Units Compl/Transferred:	$
Cost of Ending WIP:	$
Total Costs	$

Answer 1

Solution:

	Physical units
Quantities:	Conversion costs
Units to be Account for:
Work in process, beginning	500
Started in production	18000
Total units	18500
Units accounted for:
Units transferred out	18000	18000
Work in process, ending	500	400
Total units	18500	18400
Costs
Unit Costs:
Total Costs	$5,33,600
Equivalent Units	18400
Units Costs	$29.00
Costs to be accounted for:
Cost of units completed/ trfd.	$5,22,000
Cost of ending WIP	$11,600
Total Costs	$5,33,600