2. Cost of production summary using average costing.

Cobb Manufacturing Company uses a process cost system and average costing. The following production data is for the month of June 2011.

Production Costs

Work in process, beginning of month:

Materials $3,000

Labor 1,500

Factory overhead 500 $ 5,000

Costs incurred during month:

Materials $50,000

Labor 30,000

Factory overhead 20,000 100,000

Total $105,000

Production Report

Units

In process, beginning of month 1,000

Finished and transferred during month 18,000

In process, end of month 4,000

Stage of completion for materials, labor, and overhead (ending) One-half

Stage of completion for materials, labor, and overhead (beginning) One-fourth

Directions:Complete the following cost of production summary for Cobb Manufacturing Company. Show computations in spaces provided and round unit costs to three decimal places.

Cobb Manufacturing Company

Cost of Production Summary

For the Month Ended June 30, 2011

Cost of work in process, beginning of month:

Materials $

Labor

Factory overhead $

Cost of production for month:

Materials $

Labor

Factory overhead

Total costs to be accounted for $

Unit output for month:

Finished during month

Equivalent units of work in process, end of month (____________________)

Total equivalent production

Unit cost for month:

Materials (____________________) $

Labor (____________________)

Factory overhead (____________________)

Total $

Inventory costs:

Cost of goods finished during month

(____________________) $

Cost of work in process, end of month:

Materials (____________________) $

Labor (____________________)

Factory overhead (____________________)

Total production costs accounted for $

3.Using the data presented below, determine the figures that should be inserted in the blank spaces.

Beginning units in process

Units started in production Units transferred to finished goods

Ending units in process Equivalent units of production

a 700 3,200 ________ 600 - 1/3 completed ______

b _____ 2,300 ________ 400 - 1/2 completed 2,450

c 1,200 4,500 5,100 __________________ 5,500

d 1,000 _______ 8,200 ___ - 1/2 completed 8,800

e 2,200 _______ 2,400 500 - 4/5 completed ______