Romero CompanyPerth Division is a new state of the art production facility that manufactures landing gears for airplanes. The September 30th ending work in process is comprised of labor and overhead and is approximately 60% complete. All materials are assumed to be 100% complete. Total materials costs during the period totaled RM840,000.

Instructions

As the new plant accountant, you are asked to complete the production cost report which appears as follows:

ROMERO COMPANYPerth Division

Assimilation Department

Production Cost Report

For the Month Ended September 30, 2019

Equivalent Units

QUANTITIES Physical Units Materials Conversion Costs

Units to be accounted for

Work in process, September 1 300

Started into production 900

Total units 1,200

Units accounted for

Transferred out 700 700 700

Work in process, September 30 500 500

Total units 1,200 1,200

COSTS

Unit Costs Materials Conversion Costs Total

Costs in September RM840,000 RM RM1,100,000

Equivalent units

Unit costs RM RM 260 RM

Costs to be accounted for

Work in process, Sept. 1 RM 243,400

Started into production

Total costs RM

Cost Reconciliation Schedule

Costs accounted for

Transferred out RM

Work in process, September

Materials RM

Conversion costs 78,000

Total costs RM1,100,000