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 shown in the production cost report, and compute October unit costs.

HAMILTON PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, October 1    (all materials, 70% conversion costs)		22,600
Started into production		169,500
Total units		192,100
Units accounted for
Transferred out		135,600		135,600		135,600
Work in process, October 31    (60% materials, 40% conversion costs)		56,500		33900		22600
Total units accounted for		192,100		169500		158200

Costs Materials Conversion Costs Total

Unit costs

   Total Costs $271,200 $118,650 $389,850

   Equivalent units  169500 158200

   Unit costs 1.60   0.75   2.35

Costs to be accounted for

   Work in process, October 1 $33,900

   Started into production 355,950

      Total costs $389,850

Complete the “Cost Reconciliation Schedule” part of the production cost report below.

Cost Reconciliation Schedule
Costs accounted for
Transferred out		$
Work in process, October 31
Materials	$
Conversion costs
Total costs		$ 389,850

Answer 1

Answer

Costs accounted for as follows:
Transferred out		$ 318,660
Work in progress
Material	$ 54,240
Conversion Cost	$ 16,950	$   71,190
Total cost		$ 389,850

Calculations:

HAMILTON PROCESSING COMPANY
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory		$   33,900
Costs added to production during the period		$ 355,950
Total cost to be accounted for		$ 389,850
Costs accounted for as follows:
Transferred out (135600*2.35)		$ 318,660
Work in progress
Material (33900*1.6)	$ 54,240
Conversion Cost (22600*0.75)	$ 16,950	$   71,190
Total cost accounted for		$ 389,850

In case of any doubt, please comment.