Exercise 174

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

	Production
1.	Transferred out 15,000 units
2.	Ending work in process, 5,000 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31.
	Costs
	Beginning work in process	$ 0
	Materials	70,000
	Labor	21,600
	Manufacturing overhead	25,200

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

Determine the equivalent units of production for materials and conversion costs.

Materials
Conversion cost

Compute unit costs. (Round answer to 2 decimal places, e.g. 52.75.)

Material cost		$	per unit
Conversion cost		$	per unit

Prepare a cost reconciliation schedule.

Cost reconciliation schedule
Costs accounted for
	Transferred out				$
	Work in process, July 31
	Materials		$
	Conversion costs
	Total costs