Question

The Cutting Department of Cassel Company has the following production and cost data for July.

Production				Costs
1.		Transferred out 12,300 units.		Beginning work in process		$0
2.		Started 4,500 units that are 60%		Materials		68,880
		complete as to conversion		Labor		20,100
		costs and 100% complete as		Manufacturing overhead		20,400
		to materials at July 31.

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

Determine the equivalent units of production for (1) materials and (2) conversion costs.

		Materials		Conversion Costs
Total equivalent units of production		enter a number of units		enter a number of units

eTextbook and Media

Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

Materials		$enter a dollar amount rounded to 2 decimal places
Conversion costs		$enter a dollar amount rounded to 2 decimal places

eTextbook and Media

Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

Cost Reconciliation
Costs accounted for
Transferred out			$enter a dollar amount
Work in process, July 31
Materials	$enter a dollar amount
Conversion costs	enter a dollar amount		enter a total of the two previous amounts
Total costs			$enter a total amount for this cost reconciliation schedule rounded to 0 decimal places

Answer 1

Determine the equivalent units of production for (1) materials and (2) conversion costs.

		Materials		Conversion Costs
Total equivalent units of production		12300+4500 = 16800		12300+(4500*60%) = 15000

Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

Materials	68880/16800	4.10
Conversion costs	40500/15000	2.70

Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

Cost Reconciliation
Costs accounted for
Transferred out			$83640
Work in process, July 31
Materials	18450
Conversion costs	7290		25740
Total costs			109380