Palcic Manufacturing 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% complete and work in process on May 31 was 40% complete.

Instructions

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

PALCIC MANUFACTURING COMPANY

Molding Department

Production Cost Report

For the Month Ended May 31, 2018

Equivalent Units

QUANTITIES Physical Units Materials Conversion Costs

Units to be accounted for

Work in process, May 1 16,000

Started into production 50,000

Total units 66,000

Units accounted for

Transferred out ______ _______ _______

Work in process, May 31 20,000 _______ _______

Total units ______ _______ _______

COSTS

Unit costs Materials Conversion Costs Total

Costs in May $198,000 $135,000 $333,000

Equivalent units ______ _______ _______

Unit costs $______ $______ $ ______

Costs to be accounted for

Work in process, May 1 $ 83,000

Started into production** 250,000

Total costs $333,000

Cost Reconciliation Schedule

Costs accounted for

Transferred out to assembly department $

Work in process, May 31

Materials $

Conversion costs ______ ______

Total costs $______ .

Part B: journalize all the transactions from above (current period manufacturing costs and transfer to next department Packaging Department in this case).

**NOTE: Started into production costs (current period costs) breakdown as follows

Material costs: $85,000 Direct Labor: $100,000 Manufacturing Overhead: $65,000