Question
Cost of Production Report: No Beginning Inventories Howell Paving Company manufactures asphalt paving materials for highway construction through a one-step process in which all materials
Cost of Production Report: No Beginning Inventories Howell Paving Company manufactures asphalt paving materials for highway construction through a one-step process in which all materials are added at the beginning of the process. During April 2017, the company accumulated the following data in its process costing system: Production data Work-in-process, 4/1/17 0 tons Raw materials transferred to processing 25,000 tons Work-in-process, 4/30/17 (75% converted) 5,000 tons Cost data Raw materials transferred to processing $325,000 Conversion costs Direct labor cost incurred $23,750 Manufacturing overhead applied ? Manufacturing overhead is applied at the rate of $6 per equivalent unit (ton) processed. Prepare a cost of production report for April.
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