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Smithson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Data for the
Smithson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Data for the Churning Department for January follows: (Click the icon to view the data from January.) Read the requirements - 105,000 units Requirement 1. Prepare a production cost report for January for the Churning Department. Prepare a production cost report for the Churning Department, one section at a time. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell(s). Round cost per equivalent unit amounts to the nearest cent, $X.XX.) Smithson Dairy Churning Department Month Ended January 31 Data Table Production Cost Report Flow of Equivalent Units Units in beginning Work in Process (WIP) inventory Physical Direct Conversion Units started during the month (all direct materials, including cream Flow of Production Units Materials Costs and salt, are added at the beginning of the churning process) Units to account for: Units in ending Work in Process (WIP) inventory (40% of the way through the process) Beginning work in process, January 1 105,000 Cost information is as follows: Plus: Started in production during January 1,900,000 WIP - Churning Department balance as of January 1: 2,005,000 Total physical units to account for Direct material cost included in beginning WIP balance Units accounted for: Conversion cost included in beginning WIP balance Completed and transferred out Beginning balance, WIP, January 1 Plus: Ending work in process, January 31 1,900,000 units 180,000 units 635,950 79.950 $ 715.900 Total physical units accounted for Manufacturing costs incurred during January: Direct materials used Total equivalent units $ Direct labor 1,750,000 9,000 575.000 Manufacturing overhead $ 2,334.000 Total manufacturing costs entered into production during January Print Done
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