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.................................................... 20,000100,000

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

______