Proocess Costing

Instructions: Using the following data, complete the requirements given below. When you are given amounts to assume as the answers to previous requirements, be careful to use such assumed amounts rather than your answers (in order to minimize carry-through errors).

The Finishing Department of Curtis Corporation reports the following for January 2011:

Production: All materials are added at the beginning of the process. Beginning work in process 20,000 units, 60% complete. Units started into production 240,000 units. Ending work in process 10,000 units, 30% complete.

Manufacturing Costs: Beginning work in process, $40,000, comprised of $15,000 of materials and $25,000 of conversion costs. Materials added $160,000; labor and overhead added $465,000.

(a) Required: Compute equivalent units of production for (1) materials and (2) conversion costs.

(b) Assume your answers to (a) above were 250,000 units for materials and 245,000 for conversion costs. Required: Compute the unit costs for the month.

(c) Assume your answers to (b) above were $.90 for materials and $2.10 for conversion costs. Required: Determine the costs to be assigned to the 240,000 units transferred out.

(d) Assume the same unit costs as given in (c) above. Required: Determine the costs assigned to the 10,000 units in ending work in process.