Question
The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of
The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units.
Manufacturing Costs
Production Data
Beginning work in process$45,045Beginning work in process21,000units,10%completeCosts transferred in189,000Units transferred out75,600Materials79,800Units transferred in89,600Labor49,140Ending work in process35,000units,20%completeOverhead95,760
production cost report for the Welding Department for the month of February. Transferred-in costs are considered materials costs.
MAJESTIC MANUFACTURING COMPANY
Welding Department
Production Cost Report
For the Month Ended February 28 , 2020
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
Units to be accounted forWork in process, February 1
Started into production
Total units
Units accounted forCompleted and transferred outWork in process, February 1
Started and completed
Total
Work in process, February 28
Total units
Costs
Materials
Conversion
Costs
Total
Unit costsCosts in February$
$
$
Equivalent units
Unit costs$
$
$
Costs to be accounted forWork in process, February 1$
Started into production
Total costs$
Cost Reconciliation ScheduleCosts accounted forTransferred outWork in process, February 1$
Costs to complete beginning work in processConversion costs
Total costs$
Units started and completed
Total costs transferred out$
Work in process, February 28Materials
Conversion costs
Total costs$
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