Exercise 16-6

The Cutting Department of Cassel Company has the following production and cost data for July.

Production

Costs

1. Transferred out 12,500 units.Beginning work in process$0

2. Started 4,500 units that are 60%Materials 69,190

c0mplete as to conversionLabor22,004

costs and 100% c0mplete asManufacturing overhead 20,100

to materials at July 31.

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

Determine the equivalent units of production for (1) materials and (2) conversion costs.

Materials

Conversion Costs

Total equivalent units of production

Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

Materials$_________

Conversion costs$_________

Create a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

Cost Reconciliation

Costs accounted for

Transferred out$______

Work in process, July 31

Materials$_______

Conversion costs$_______$_______

Total costs$_______