Mayer Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 75% finalized and work in process on May 31 was 60% complete.

Instructions

Complete the Production Cost Report for the Molding Department for the month of May using the above information and the information below.

MAYER COMPANY

Molding Department

Production Cost Report

For the Month Ended May 31, 2017

EquivalentUnits

QUANTITIESPhysical UnitsMaterialsConversion Costs

Units to be accounted for

Work in process, May 18,000

Started into production32,000

Total units40,000

Units accounted for

Transferred out35,000

Work in process, May 315,000

Total units40,000

COSTS

Unit costsMaterialsConversion CostsTotal

Costs in May$140,000$161,500$301,500

Equivalent units

Unit costs$$ $

Costs to be accounted for

Work in process, May 1$60,000

Started into production241,500

Total costs$301,500

Cost Reconciliation Schedule

Costs accounted for

Transferred out$

Work in process, May 31

Materials$

Conversion costs

Totalcosts$301,500