Cost of Production Report: No Beginning Inventories

Oregon Paper Company produces newsprint paper through a special recycling process using scrap paper products. Production and cost data for October 2009, the first month of operations for the company's new Portland plant, follow: Units of product started in process during October 90,000 tons Units completed and transferred to finished goods 75,000 tons Machine hours operated 10,000 Direct materials costs incurred $522,000 Direct labor costs incurred $183,750

Raw materials are added at the beginning of the process for each unit of product produced, and labor and manufacturing overhead are added evenly throughout the manufacturing process. Manufacturing overhead is applied to Work-in-Process at the rate of $24 per machine hour. Units in process at the end of the period were 65 percent converted.

Create a cost of production report for Oregon Paper Company for October.

• Round answers to the nearest whole number unless otherwise noted.
• Do not use negative signs with your answers.

Oregon Paper Company

Cost of Production Report

For the Month Ending October 31, 2009 Summary of units in process (tons):

Beginning Answer

Units started

In process

Completed

Ending

Equivalent units in process: Materials Conversion Total Units completed

Plus equivalent units in ending inventory

Equivalent units in process

Total cost to be accounted for and cost per equivalent unit in process: Beginning work-in-process

Current costs

Total cost in process

Equivalent units in process

Cost per equivalent unit in process (Do not round answers.)

Accounting for total costs: Transferred out

Ending work-in-process: Materials

Conversion

Total cost accounted for