Question
P17-2A Complete four steps necessary to prepare a production cost report 25 Points Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In
P17-2A Complete four steps necessary to prepare a production cost report 25 Points Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, plastics and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2017 are presented below. Production Data June Beginning work in process units 0 Units started into production 22,000 Ending work in process units 2,000 Percent complete-ending inventory 40% Cost Data Materials $198,000 Labor $53,600 Overhead $112,800 Total cost $364,400
Instructions (a) Prepare a schedule showing physical units of production. (b) Determine the equivalent units of production for materials and conversion costs. (c ) Compute the unit costs of production. (d) Determine the costs to be assigned to the units transferred out and in process for June. (e ) Prepare a production cost report for the Molding Department for the month of June. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a) Prepare a schedule showing physical units of production. Physical Units to be accounted for Units Work in process, June 1 0 Units started into production 22,000 Total units 22,000 Units accounted for Units transferred out 20,000 Work in process, September 30 2,000 Total units 22,000
(b) Determine the equivalent units of production for materials and conversion costs. Conversion Materials Costs Equivalent units Transferred out 20,000 20,000 Work in process, September 30 2,000 times 100% 2,000 2,000 times 40% 800 Total units 22,000 20,800
(c ) Compute the unit costs of production. Materials Conversion Costs Total Unit costs Work in Process 198,000 22,000 Sept manufacturing costs Value Total cost Value Value Value Equivalent units Value Value Unit costs $17 $17
(d) Determine the costs to be assigned to the units transferred out and in process for June.
Materials Conversion Costs Total Cost of Units Transferred Out, Sept. Units Transferred out Unit costs Value Value Total Cost ? ? ? Cost of Work in Process, Sept. 30 Units in Work in Process Value Value Unit costs (a) (b) Value Value Total Cost ? ? ? Total Cost - Check number ? ? ? (e ) Prepare a production cost report for the Molding Department for the month of June. ROSENTHAL COMPANY Molding Department Production Cost Report For the Month Ended June 30, 2017 Equivalent Units Physical Conversion Quantities Units Materials Costs Units to be accounted for Work in process, June 1 0 Started into production 22,000 Total units 22,000 Units accounted for Transferred out 20,000 20,000 20,000 Work in process, June 30 2,000 2,000 800 Total units 22,000 22,000 20,800 Costs Total Unit costs Total cost $198,000 $166,400 $364,400 Equivalent units 22,000 20,800 Unit costs $9.00 $8.00 $17.00 Costs to be accounted for Work in process, June 1 0 Started into production 364,400 Total costs $364,400 Cost Reconciliation Schedule Costs accounted for Total Units Unit Cost Transferred out Work in process, June 1 Costs ot complete work in process Conversion costs Value Value ? ? Units started and completed Value Value ? Total costs transferred out ? Work in process, June 30 Materials (2,000 X $9.00) Value Value ? Conversion costs (800 X $8.00) Value Value ? ? Total costs ?
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