Exercise 3-6

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

Production Costs 1. Transferred out 13,700 units. Beginning work in process $0 2. Started 4,900 units that are 60% Materials 60,450 complete as to conversion Labor 29,187 costs and 100% complete as Manufacturing overhead 20,400 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 $

Prepare 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 $