Question 2 The Polishing Department of Longbine Manufacturing Company has the following production and manufacturing cost data for June. Materials are entered at the beginning of the process (work in process equal to 100%) 46 points Save Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 12,000; ending inventory of 3,000 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $167,680; labor and overhead applied in Polishing department during the month, $100,080 and $277,480 respectively. Instructions: Prepare a cost of production report by satisfying the requirements below: 1. Compute the physical flow of units 2. Compute the equivalent units of production for materials and conversion costs for the month of September 3. Compute the unit costs for materials and conversion costs for the month 4. Determine the costs to be assigned to the units transferred out and in process. LONGBINE MANUFACTURING COMPANY Polishing Department Production Cost Report For the Month Ended June 30 QUANTITIES Units to be accounted for (100% materials, 30% conversion costs) Started into production Total units Physical Units Materials Equivalent Units Conversion Costs Work-in-process, June 1 (a) (b) Units accounted for Transferred out (c) (c) (f) Work-in-process, June 30 (d) (100 % materials, (g) (h) 10% conversion costs) Total units (D) 6) COSTS Units costs Cost in June Equivalent units Unit costs Cost to be accounted for Work-in-process, June 1 Started into production Total costs Cost Reconciliation Table Cost accounted for Transferred out Work-in-process, June 30 Materials Conversion costs Total costs Materials S187,680 Conversion Costs $420.740 Total $608,420 (k) (m) S (1) $ (n) = S (0) 3 (t) (u) $ (p) $ (9) S (r) $ (s) (v) S (w)