Question

Problem 16-02A

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.

Production Data		June
Beginning work in process units		0
Units started into production		28,820
Ending work in process units		2,620
Percent complete—ending inventory		40	%

Cost Data
Materials		$259,380
Labor		70,216
Overhead		147,768
Total		$477,364

Determine the costs to be assigned to the units transferred out and in process for June.

Transferred out		$enter a dollar amount
Work in process, June 30		$enter a dollar amount

Answer 1

Solution: Transferred out Work in process, June 30 445,400 31,964 Explanation: a.Equivalent units of production Units completed and transferred out Units of ending goods in process Equivalent units of production Units % Material EUP- Material % conversion (EUP- conversion |а |ь a*b a*c 26,200 100% 26,200 100% 26,200 2.620 2.620 40% 1,048 28,820 27,248 conversion 0 b.Cost per equivalent unit of production Cost of beginning goods in process Costs incurred this period Total costs = Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Material ol 259380 259380 Costs 28.820 EUP 9.00 Costs 217.984 217984 27.248 8.00 EUP Cost per EUP c.Cost of units transferred out: EUP Total cost Material conversion Total costs transferred out 26,200 26,200 9.00 8.00 235,800 209.600) 445,400 d. Costs of ending goods in process Material conversion Total cost of ending goods in process Cost per E EUP UP 2,620 9.00 1,048 8.00 Total cost 23,580 8.384 31,964