MANAGERIAL ACCOUNTING HANDOUT PROBLEM 6 Score Name Section Problem (10 points). Britten Company manufactures room air conditioners. The company uses a process cost system to accumulate production costs and allocate them to finished goods and work in process inventory. For the month of May of the current year, the company started with 1,500 units in work in process inventory and started on 3,500 additional units during the month. At the end of May, there were 600 units that remained uncompleted. During the month of May, the company incurred direct materials cost of $364,000 and direct labor cost of $136,000. Manufacturing overhead is applied to production at a predetermined rate of 80% of direct materials cost. The beginning work in process inventory contained direct materials cost of S86,000 and conversion costs of S102,000. The production process involves adding materials at various stages during the manufacturing process. Conversion costs are added uniformly during the production process. The beginning work in process inventory was 75% complete as to direct materials and 60% complete as to conversion costs. The ending work in process was 60% complete as to direct materials and 45% complete as to conversion costs. The company uses a FIFO cost flow assumption in assigning costs to production and preparing its internal management reports. REQUIRED: Prepare a cost of production report for Britten Company for the month of May using the attached schedules, Round your computations for costs per equivalent unit to five decimal places. Round all dollar amounts to the nearest whole dollar BRITTEN COMPANY SCHEDULE OF PHYSICAL AND EQUIVALENT UNITS FIFO COST METHOD FOR MONTH OF MAY Physical Units Equivalent Units Direct Conversion Materials Costs Units To Account For: decimal places. Round all dollar amounts to the nearest whole dollar. BRITTEN COMPANY SCHEDULE OF PHYSICAL AND EQUIVALENT UNITS FIFO COST METHOD FOR MONTH OF MAY Equivalent Units Physical Direct Conversion Units Materials Costs Units To Account For: Beginning WIP Inventory Units Started During Period Total Units To Account For Units Accounted For: Units Completed During Period: From Beginning WIP Inventory Units Started and Completed During Period Total Units Completed During Period Units in Ending WIP Inventory Total Units Accounted For 3/4 BRITTEN COMPANY UNIT COST ANALYSIS SCHEDULE FIFO COST METHOD FOR MONTH OF MAY Direct Conversion Materials Costs Costs To Account For: Costs From Beginning WIP Inventory Current Period Costs Total Costs To Account For Total Costs Divided By Equivalent Units Cost Per Equivalent Unit BRITTEN COMPANY COST SUMMARY SCHEDULE FIFO COST METHOD FOR MONTH OF MAY Total Direct Materials | Conversion Costs Costs Costs Accounted For: From Beginning WIP Inventory To Complete Beginning WIP Inventory: Direct Materials Conversion Costs Units Started and Completed During Period: Direct Materials Conversion Costs Total Cost of Units Completed and Transferred to Finished Goods Ending Work in Process Inventory: Direct Materials Conversion Costs Total Cost of Ending Work in Process Total Costs Accounted For