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Athene Enterprises manufactures dozens of products in several different manufacturing facilities. One of their factories is devoted to their best-selling product, the Burrow. This facility
- Athene Enterprises manufactures dozens of products in several different manufacturing facilities. One of their factories is devoted to their best-selling product, the Burrow. This facility uses a process cost system. Here is data for the month of June:
Beginning inventory in process 78,000 units
Units placed into production 1,800,000 units
Units transferred out 1,750,000
Ending inventory in process 128,000 units
Ending inventory 60% complete with respect to materials, 30% for conversion costs
Beginning inventory costs $286,000 for materials, $355,000 for conversion
Costs added in June $6,580,000 for materials, $16,502,000 for conversion
Required:
- Use the template to complete the June production report for this product.
- In your own words, explain how the company is likely to use the cost per equivalent unit information AND what information from this report will be included in the companys financial statements for this period.
Units | Equivalent Units | |||
Beginning Inventory | ||||
Started | ||||
Total to account for | - | |||
Materials | Conversion | |||
Transferred out | - | - | ||
Eq units in ending inv. | - | - | ||
Total accounted for | - | - | - | |
Costs | ||||
Total | Materials | Conversion | ||
Costs to account for | ||||
Beginning Inventory | - | |||
Added | - | |||
Total to account for | - | - | - | |
Costs per equivalent unit | - | |||
Costs accounted for | ||||
Transferred out | - | - | - | |
Ending Inventory | - | - | - | |
Costs accounted for | - | - | - |
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