Question

The Cutting Department of Cassel Company has the following production and cost data for July.

Production				Costs
1.		Transferred out 12,000 units.		Beginning work in process		$0
2.		Started 3,000 units that are 60%		Materials		45,000
		complete as to conversion		Labor		16,200
		costs and 100% complete as		Manufacturing overhead		18,300
		to materials at July 31.

Compute unit costs for:

Materials:

Conversion costs:

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			$

Answer 1

	Materials	Conversion cost
Units transferred out	12000	12000
(+) Ending work in process equivalent units [ Ending work in process units * % Completion ]	3000	1800
Total equivalent units of production	15000	13800
	Materials	Conversion cost
Cost added	45000	34500
(/) Total equivalent units of production	15000	13800
Unit cost	3.00	2.50

Cost reconciliation
Costs accounted for
Transferred out [ (12000*3.00) + (12000*2.50) ]	66000
Work in proces, July 31
Materials [ 3000*3.00 ]	9000
Conversion cost [ 1800*2.50 ]	4500	13500
Total cost		79500

If you have any doubt then please ask

Please do rate the answer