Question
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
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 | ______ |
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