Question
Luxman Company has several processing departments. Costs charged to the Assembly Department for October 2017 totaled $1,298,400 as follows. Work in process units, October 1
Luxman Company has several processing departments. Costs charged to the Assembly Department for October 2017 totaled $1,298,400 as follows.
Work in process units, October 1 |
|
|
Materials | $29,000 |
|
Conversion costs | 16,500 | $ 45,500 |
Materials added |
| 1,006,000 |
Labor |
| 138,900 |
Overhead |
| 108,000 |
Production records show that 25,000 units were in beginning work in process 40% complete as to conversion cost, 435,000 units were started into production, and 35,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Instructions
|
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.
(b) Determine the assignment of costs to goods transferred out and in process.
(c) Prepare a production cost report for the Assembly Department
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