Question
ROMALY, INC. has several processing departments. Costs charged to the Forming Department for December 2011 totaled $1,505,000 as follows: Work in Process, December 1 Materials
ROMALY, INC. has several processing departments. Costs charged to the Forming Department for December 2011 totaled $1,505,000 as follows:
Work in Process, December 1 |
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|
|
Materials |
| $ 103,400 |
|
Conversion costs |
| 60,000 | $ 163,400 |
Costs Added: |
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|
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Materials added |
| $ 1,100,800 |
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Labor | $ 100,000 |
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|
Manufacturing Overhead | 102,800 |
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|
Total Conversion Costs |
| 202,800 |
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Total Cost added |
|
| 1,303,600 |
Total Department Costs |
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| $ 1,467,000 |
Production records show that:
60,000 units were in beginning work in process inventory
25% complete as to materials costs
70% complete as to conversion cost
410,000 units were started into production
40,000 units were in ending work in process inventory
40% complete as to materials costs
20% complete as to conversion costs.
Prepare a production cost report for the Forming Department for the month of December.
FORMING DEPARTMENT | |||||||||
PRODUCTION COST REPORT | |||||||||
FOR THE MONTH ENDED DECEMBER 31, 2011 | |||||||||
STEPS 1 AND 2
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| PHYSICAL UNITS |
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UNITS TO BE ACCOUNTED FOR | STEP 1 | ||||||||
WIP, Dec 1 (Beginning Inventory) |
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STARTED INTO PRODUCTION |
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TOTAL UNITS |
| STEP 2 | |||||||
| STEP 1 | EQUIVALENT UNITS | |||||||
UNITS TO BE ACCOUNTED FOR | PHYSICAL UNITS | MATERIALS | CONVERSION COSTS | ||||||
TRANSFERRED OUT |
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WIP, Dec 31 (Ending Inventory) |
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TOTAL UNITS |
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STEP 3
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U N I T C O S T S | |||||||||
COSTS |
MATERIALS | CONVERSION COSTS |
TOTAL | ||||||
TOTAL COSTS AS OF DECEMBER | (a) | $ | $ | $ | |||||
EQUIVALENT UNITS | (b) |
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UNIT COST a/b |
| $ | $ | $ | |||||
STEP 4
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C O S T ACCOUNTED FOR | |||||||||
WIP, Dec 1 (Beginning Inventory) | $ | ||||||||
STARTED INTO PRODUCTION |
| ||||||||
TOTAL COST FOR THE MONTH OF DECEMBER | $ | ||||||||
COST RECONCILIATION SCHEDULE | |||||||||
Completed & Transferred Out | $ | ||||||||
WIP Ending Inventory-Dec 31-Direct Material Costs(Equivalent Units) | $ |
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WIP Ending Inventory-Dec 31-Conversion Costs (Equivalent Units) |
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Total Costs WIP Ending Inventory-Dec 31 (Based on equivalent units) |
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TOTAL COST FOR THE MONTH OF DECEMBER 2011 | $ |
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