Chapter 21 Assignment

At the end of June, 2021, the Kellogg Company provided the following information for its production department:

Units:
WIP beginning, June 1	20,000
Direct Materials: 100 % complete
Conversion Costs: 40 % complete
Units started into production during June	55,000
Units completed and transferred out	50,000
WIP, June 30:
Direct Materials: 100 % complete
Conversion Costs: 40 % complete
Costs:
WIP, June 1
Direct Materials	$145,000
Conversion Costs	$30,000
Started into production
Direct Materials	$305,000
Conversion Costs	$120,000

Complete the worksheet below and answer the questions following the worksheet. Without a completed worksheet, the values to the questions below will not be acceptable. Do not fill in the boxed areas

Department Name:

Production Cost Report

Period Covered By Report:

EQUIVALENT UNITS

Physical Direct Conversion

Units Materials Costs^* Total

Quantities

Units to be accounted for:

Work in Process, beginning

+ Started (transferred) into production

= Total Units

Units accounted for:

Completed and transferred out

+ Work in Process, ending

= Total Units

Costs

Direct Conversion

Materials Costs^* Total

a. Total Costs during period

b. Equivalent units

Unit Costs = a b

Breakdown of Total Costs to be accounted for:

Work in Process, beginning

+ Started into production

= Total Costs

Cost Reconciliation Schedule

Costs accounted for:

Transferred out

Work in Process, Ending

Materials (times unit cost of materials)

Conversion (times unit cost of conversion)

Total Costs

* Conversion costs = Direct Labor + MOH

Questions:

1. Number of physical units in WIP ending:
2. DM unit cost:
3. CC unit cost:
4. Total cost per unit:
5. Value (in dollars) of goods completed and transferred out:
6. Value (in dollars) of WIP ending account:
7. Show the Journal entry to transfer the value of completed goods from the Production department to Finished Goods:

Date	Accounts	Debits	Credits