The Cutting Department of Cassel Company has the following
production and cost data for July.
Production
Costs
1. Transferred out 14,000 units. Beginning work in
process $0
2. Started 3,100 units that are 60% Materials
57,969
complete as to conversion Labor 24,160
costs and 100% complete as Manufacturing overhead 21,200
to materials at July 31.
Materials are entered at the beginning of the process. Conversion
costs are incurred uniformly during the process.
(a)
Correct answer iconYour answer is correct.
Determine the equivalent units of production for (1) materials and
(2) conversion costs.
Materials
Conversion Costs
Total equivalent units of production
(b1)
Correct answer iconYour answer is correct.
Compute unit costs. (Round unit costs to 2 decimal places, e.g.
2.25.)
Materials
$
Conversion costs
$
(b2)
Partially correct answer iconYour answer is partially
correct.
Prepare a cost reconciliation schedule. (Round unit costs to 2
decimal places, e.g. 2.25 and final answers to 0 decimal places,
e.g. 1,225.)
Cost Reconciliation
Costs accounted for
Transferred out
$
Work in process, July 31
Materials
$
Conversion costs
Total
costs
$
$ |
Materials | Conversion Costs | |
Units transferred out | 14,000 | 14,000 |
Work in process, July 31 | ||
3,100 x 100% | 3100 | |
3,100 x 60% | 1860 | |
Total equivalent units | 17,100 | 15,860 |
Materials: | 57,969/17100 | 3.39 |
Conversion costs: | (24160+21200)/15860 | 2.86 |
Transferred out | 14000*3.39 | 47460 |
Materials | 3100*3.39 | 10509 |
Conversion costs | 1860*2.86 | 5320 |
Cost Reconciliation | ||
Costs accounted for | ||
Transferred out | 47460 | |
Work in process, July 31 | ||
Materials | 10509 | |
Conversion costs | 5320 | 15829 |
Total costs | 63289 |
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