Question

Austin Co. manufectures a product caled Aster in a three-precess seres All materials are intreduced et the beginning of the first process. Austin uses the frs-in, fiest-out method of Invertory cesting. Unit and cost data for the first process (Department A) for the momth of December follows Units Completion Cost Work in precess inventory Deceber 1 12,020 60% :40,400 December 31 5.000 40% Started in December: 14,00 Direct materiale cost 106.400 Conversion cost 70.310M Completed in December 21 000 Prepere Austin's Depertment A cast of procuction report for December Raund your cost per ecuivalent nt a ants to twe decmal paceE Round al other ampunts to the netrest dollac f an amaunt yelue is cero enber 0" as anewer Autn Company Cost of Producon Repot Oepernent A For the Month Ended December 33 Unt iurma uns cherged to praduction Inventory in process, December 1 Received from ntas storeroon

Answer 1

Solution:

Austin Company
Cost of Production Report-Department A
For the Month Ended December 31
Unit Information
Units charged to production:
Inventory in process, Dec 1			12000
Received from Material store room			14000
Total units accounted for by Dept. A			26000
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, Dec 1	12000	0	4800
Started and completed in December	9000	9000	9000
Transferred to finished goods in December	21000	9000	13800
Inventory in process, December 31	5000	5000	2000
Total units to be assigned costs	26000	14000	15800
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for December in Department A		$106,400.00	$70,310.00
Total equivalent units		14000	15800
Cost per equivalent unit		$7.60	$4.45
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, Dec 1			$140,400.00
Costs incurred in December			$176,710.00
Total costs accounted for by the Dept A			$317,110.00
Costs allocated to completed and partially completed units:
Inventory in process, December 1 balance			$140,400.00
To complete inventory in process, December 1	$0.00	$21,360.00	$21,360.00
Started and completed in December	$68,400.00	$40,050.00	$108,450.00
Transferred to finished goods in December			$270,210.00
Inventory in process, December 31	$38,000.00	$8,900.00	$46,900.00
Total costs assigned by the Dept A			$317,110.00