Question

Prepare a schedule that shows how the equivalent units were computed so that you can complete the "Quantities: Units accounted for" equivalent units section si (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to o decimal places, e.g. 125.) HAMILTON PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Physical Conversion Quantities Units Materials Costs Units to be accounted for Work in process, October 1 20,000 (all materials, 70% conversion costs) Started into production 150,000 Total units 170,000 120,000 Units accounted for Transferred out Work in process, October 31 (60% materials, 40% conversion costs) Total units accounted for 50,000 170,000 3000 1500 1200 2000 1 400 Conversion Materials Costs Total Costs Unit costs Total Costs Equivalent units $240,000 1500 $1.60 $105,000 $345,000 1400 Unit costs $0.75 $2.35 Costs to be accounted for Work in process, October 1 $30,000 Started into production 315,000 Total costs $345,000 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT (b) Complete the "Cost Reconciliation Schedule" part of the production cost report. Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, October 31 Materials Conversion costs Total costs Click if you would like to Show Work for this question: Open Show Work

Answer 1

Solution

Costs accounted for:
Transferred out		$        282,000
Work in process, October 31
Materials	$         48,000
Conversion costs	$         15,000	$            63,000
Total costs		$        345,000

Working

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.60	30,000	$          48,000.00	1,20,000	$ 192,000
Conversion cost	$ 0.75	20,000	$          15,000.00	1,20,000	$          90,000.00
TOTAL	$ 345,000	TOTAL	$ 63,000	TOTAL	$ 282,000