ACCT 301 Week 6 HW Exercise 4 Process cost system Step #1 Physical flow begin WIP 4000 End WIP Started 2000 Transferred out 4000 The Finishing Department of Cosette Company has the following production and cost data for July: 1 Beginning Inventory 4000 units 2 Transferred out, 4,000 units. Beginning 4000 units 3 Started 2,000 units that are 40% completed at July 31. 4 Materials added, $30,000, conversion costs incurred, $19,200. (a) Equivalent Units Materials Conversion Costs Physical Units 4,000 Transferred Out Work in Process, July 31 Total Materials are entered at the beginning of the process. Conversion costs, %, are incurred uniformly during the process. Unit costs Materials cost per unit = (b) ($30,000 + x units) Instructions (a) Compute the equivalent units of production for materials and conversion costs for the month of July. (b) Compute unit costs and prepare a cost reconciliation schedule. Conversion cost per unit = ($19,200 + y units) Conversion = Labor plus overhead Prime = materials and labor Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs ACCT 301 Week 6 HW Exercise 4 Process cost system Step #1 Physical flow begin WIP 4000 End WIP Started 2000 Transferred out 4000 The Finishing Department of Cosette Company has the following production and cost data for July: 1 Beginning Inventory 4000 units 2 Transferred out, 4,000 units. Beginning 4000 units 3 Started 2,000 units that are 40% completed at July 31. 4 Materials added, $30,000, conversion costs incurred, $19,200. (a) Equivalent Units Materials Conversion Costs Physical Units 4,000 Transferred Out Work in Process, July 31 Total Materials are entered at the beginning of the process. Conversion costs, %, are incurred uniformly during the process. Unit costs Materials cost per unit = (b) ($30,000 + x units) Instructions (a) Compute the equivalent units of production for materials and conversion costs for the month of July. (b) Compute unit costs and prepare a cost reconciliation schedule. Conversion cost per unit = ($19,200 + y units) Conversion = Labor plus overhead Prime = materials and labor Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs