Question
Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a
Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May 2020:
Units | |
Beginning work in process inventory | 16,000 |
Started into production during May | 100,000 |
Completed during May | 92,000 |
Ending work in process inventory | ? |
The beginning work in process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs. The ending work in process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs. The costs were as follows:
Conversion | Materials | |
Beginning work in process inventory | $54,560 | $35,560 |
Costs incurred during May | $468,000 | $574,040 |
You are required to complete the process costing template (Excel) for Kimbeth Manufacturing for the month of May 2020 to determine the average unit cost, as well as the valuation for the completed goods and those still in process on May 31, 2020.
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