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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

Materials

$ 103,400

Conversion costs

60,000

$ 163,400

Costs Added:

Materials added

$ 1,100,800

Labor

$ 100,000

Manufacturing Overhead

102,800

Total Conversion Costs

202,800

Total Cost added

1,303,600

Total Department Costs

$ 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

PHYSICAL UNITS

UNITS TO BE ACCOUNTED FOR

STEP 1

WIP, Dec 1 (Beginning Inventory)

STARTED INTO PRODUCTION

TOTAL UNITS

STEP 2

STEP 1

EQUIVALENT UNITS

UNITS TO BE ACCOUNTED FOR

PHYSICAL UNITS

MATERIALS

CONVERSION COSTS

TRANSFERRED OUT

WIP, Dec 31 (Ending Inventory)

TOTAL UNITS

STEP 3

U N I T C O S T S

COSTS

MATERIALS

CONVERSION COSTS

TOTAL

TOTAL COSTS AS OF DECEMBER

(a)

$

$

$

EQUIVALENT UNITS

(b)

UNIT COST a/b

$

$

$

STEP 4

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)

$

WIP Ending Inventory-Dec 31-Conversion Costs (Equivalent Units)

Total Costs WIP Ending Inventory-Dec 31 (Based on equivalent units)

TOTAL COST FOR THE MONTH OF DECEMBER 2011

$

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