Month Problem 4 Murphy Painting Company has the following production data for March Production Data Beginning Work in Process Ending Work in Process % Complete as to Units Completed % Complete as to Units Conversion Cost and transferred Out Units Conversion Cost March 2,000 50% 4,000 3,500 60% Cost Data WORK IN PROCESS FINISHING Balance, March 1 8,000 Transferred out Materials 1,800 Labor 3,800 Overhead 2.800 Balance The beginning work in process had conversion costs of $3,300. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. The Finishing Department uses a process cost accounting system and a weighted average cost flow assumption Instructions (1) Compute equivalent units of production for March for both materials and conversion costs (2) Compute unit costs and prepare a cost reconciliation schedule Solution Physical Units Value Value Equivalent Units Materials Conversion Costs Value Value Completed and transferred out Ending work in process Materials Conversion costs-60% complete Total units Value Value ? 2 2 Total Direct materials cost Conversion costs Value Value Value Value ? ? Value Value ? ? ? ? Work in process, March 1 Costs added to production during June Total Equivalent Units Unit Cost Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, March 31 Materials Conversion costs Total costs X Unit Value unit cost Value ? Value Value Value Value Value Value