Process Cost Problem The inventory at May 1 and the costs charged to Work in Process --Department B during May for Star Company are as follows: 1,500 units, 75% completed From Department A, 8,000 units Direct labor Factory overhead $ 15,200 64,500 30,000 19,420 During May, 1,500 units in process on May 1 were completed, and of the 8,000 units entering the department, all were completed except 1,250 units which were 25% completed. Charges to Work-in-Process-Department B for June are as follows: From Department A, 8,400 units $71,420 Direct labor .36,000 Factory overhead .19,970 During June, the units in process at the beginning of the month were completed, ansi of the 8,400 units entering the department, all were completed except 800 units which were 80% completed. Instructions 1. Enter the balance as of May 1 in a four-column account for Work in Process Department B. Record the debits and the credits in the account for May. Construct a cost of production report, and present computations for determining (a) equivalent units of production for materials and conversion, (b) equivalent costs per unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in May, and (d) work in process inventory. 2. Provide the same information for June by recording the June transactions in the four- column work in process account. Construct a cost of production report, and present the June computations (a through d) listed in (1). 1. and 2 Work in Process - Department B Balance Credit Debit Credit Debit % complete) units Date item May 1 Bal. units, 31 Cooking Dept. 31 Direct labor 31 Factory overhead 31 Finished goods May 31 Bal.. units. June 30 Cooking Dept., 30 Direct labor 30 Factory overhead 30 Finished goods June 30 Bal. units % complete) units % complete STAR COMPANY Cost of Production Report - Department B For the Month Ended May 31, 2014 UNITS Equivalent Unite Direct Materials Conversion Whole Units 31. 1 2 3 4 5 6 17 JB 39 40 41 42 43 44 45 46 Units charged to production Inventory in process, May 1 Received from Department A Total units accounted for by Department B % complete) Units to be ashed cost: Inventory in process, May 1 Started and completed in May Transferred to finished goods in May Inventory in process, May 31 Total units to be assigned cost complete S COSTS Costs Conversion Total Direct Materials Costs per equivalent unit: Total costs for May in Department B Total equivalent units Cost per equivalent unit Costs assigned to production: Inventory in process, May 1 Costs incurred in May Total costs accounted for by Department B Costs allocated to completed and partially completed units: Inventory in process, May 1 To complete inventory in process, May 1 Cost of completed May 1 work in process Started and completed in May Transferred to finished goods in May Inventory in process, May 31 Total costs assigned by Department STAR COMPANY Cost of Production Report Departments For the Month Ended June 30, 2014 UNITS Equivalent Units Direct Materials Conversion Whole Units 0 Units charged to production Inventory in process, June 1 Received from Department A Total units accounted for by Department B 22 33 34 35 36 87 58 89 x complete) Units to be assigned cost Inventory in process, June 1 Started and completed in June Transferred to finished goods in lune Inventory in process, June 30 Total units to be and cost complete COSTS Costs Conversion Direct Materials Total + Costs per equivalent unit: Total costs for June in Department B Total equivalent units Cost per equivalent unit Costs assigned to production: Inventory in process, June 1 Costs incurred in June Total costs accounted for by Department 8 Costs allocated to completed and partially completed units: Inventory in process, June 1 To complete inventory in process, June 1 Cost of completed June 1 work in process Started and completed in June Transferred to finished goods in June Inventory in process, June 30 Total costs asigned by Department