Question

Question 31 Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning WIP Started in production Completed production Ending WIP 17,400 units 103,300 92,000 28,700 The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of the process. Costs pertaining to the month of April are as follows: $66,100 22,000 16,600 Beginning inventory costs are: Materials Direct labour Factory overhead Costs incurred during April include: Materials Direct labour Factory overhead $568,150 199,600 391,204

Answer 1

1.

		Equivalent units
	Physical units	Direct material	Conversion cost
Beginning WIP	17,400		6,960 (17,400*40%)
Started and completed (92,000-17,400)	74,600	74,600	74,600
Ending WIP	28,700	28,700	11,480 (28,700*40%)
Total	120,700	103,300	93,040

2.

	Unit cost
Materials	$5.5 ($568,150/103,300)
Conversion cost	$6.35 ($199,600+391,204/93,040)
Total	$11.85

3.

	Total	Materials	Conversion
Beginning inventory	$104,700	$66,100	$38,600
Complete beginning WIP	44,196		44,196 (6,960*$6.35)
Started and completed	884,010	410,300 (74,600*$5.5)	473,710 (74,600*$6.35)
Cost for units transferred out	$1,032,906	$476,400	$556,506
Ending work in process	230,748	157,850 (28,700*$5.5)	72,898 (11,480*$6.35)
Total costs	$1,263,654	$634,250	$629,404

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