Problem III. ROMALY, INC. has several processing departments. Costs charged to the Forming Department for December 2016 totaled $1,505,000 as follows: Romaly, Inc. tiene varios departamentos de produccin. Los costos incurridos en el Departamento de Forming para diciembre de 2016 totalizaron $1505,000 como siguen: Work in Process, December 1 Costs Added: Direct Materials Direct Labor Manufacturing Overhead Total Cost added Total Department Costs $75,000 $1,173,800 110,000 146,000 1,430,000 $ 1,505,000 Production records show that (Los records de produccin muentras que): 1. 50,000 units were in beginning work in process inventory: 70% completed 2. 440,000 units were started into production 3. 70,000 units were in ending work in process inventory: 40% completed Instructions: a. b. c. d. c. Compute the physical unit flow, step 1. Determine the total equivalent units of production, step 2. Compute the unit cost of production, step 3. Determine the costs to be assigned to the units transferred out to Finished Goods Inventory and in Work in Process Inventory. Prepare a production cost report for the Forming Department for the month of December. Instrucciones: a. Computar el flujo de las unidades fisicas, paso 1. b. Determinar el total de las unidades equivalentes, paso 2. c. Computar el costo por unidad de produccin, paso 3. d. Determine el costo asignado a las unidades transferidas a Finished Goods Inventory y lo qued en el inventario de Work in Process. que e. Prepare el informe de produccin para el Departamento de Forming para el mes de Diciembre de 2016. n III: FOUR SPETS TO PREPARE PRODUCTION COST REPORT art e. Prepare a production cost report for the Forming Department for the month of December FORMING DEPARTMENT (18) PRODUCTION COST REPORT FOR THE MONTH ENDED DECEMBER 31, 2016 STEPS 1 AND 2 UNITS TO BE ACCOUNTED FOR WIP, Dec 1 (Beginning Inventory) STARTED INTO PRODUCTION TOTAL UNITS PHYSICAL UNITS STEP 1 STEP 1 STEP 2 UNITS TO BE ACCOUNTED FOR PHYSICAL UNITS TOTAL EQUIVALENT UNITS TRANSFERRED OUT WIP, Dec 31 (Ending Inventory) TOTAL UNITS COSTS TOTAL COSTS AS OF DECEMBER EQUIVALENT UNITS UNIT COST a/b STEP 3 UNIT COSTS (a) S (b) $ STEP 4 COST ACCOUNTED FOR WIP, Dec 1 (Beginning Inventory) $ STARTED INTO PRODUCTION TOTAL COST FOR THE MONTH OF DECEMBER S COST RECONCILIATION SCHEDULE TRANSFERRED OUT $ Total Costs WIP Ending Inventory-Dec 31 (Based on equivalent units) TOTAL COST FOR THE MONTH OF DECEMBER $ Part a. Compute the physical units flow (step 1). FORMING DEPARTMENT (12 puntos) PHYSICAL UNITS TO BE ACCOUNTED FOR WIP, Dec 1 (Beginning Inventory) STARDED (TRANSFERRED) INTO PRODUCTION TOTAL UNITS COMPLETED AND TRANSFERRD OUT WIP, Dec 31 (Ending Inventory) TOTAL UNITS Part b. Determine the equivalent units of production (step 2). FORMING DEPARTMENT (6 puntos) TOTAL EQUIVALENT UNITS UNITS TRANSFERRED OUT WIP, Dec 31 (Ending Inventory) TOTAL EQUIVALENT UNITS Part e. Compute the unit cost of production (Sept 3). STEP 3: COMPUTE UNIT PRODUCTION COSTS FORMING DEPARTMENT COSTS PER UNIT (12 puntos) WIP, Dec 1-(Cost in Beginning Inventory) Costs incurred or added into production during December Total Manufacturing Costs S TOTAL COSTS/TOTAL EQUIVALENT UNITS DIVIDIDO ENTRE $ S =TOTAL UNITS COST FORMING DEPARTMENT Part d. Determine the costs to be assigned to the units transferred out and in process (Step 4) COST RECONCILIATION REPORT (12 puntos) COST ACCOUNTED FOR WIP, Dec 1 (Beginning Inventory) S STARTED INTO PRODUCTION TOTAL COSTS S COST ACCOUNTED FOR TRANSFERRED OUT $ WIP Dec 31 (Equivalent Units in Ending Inventory) TOTAL COSTS S art e. F