Question

Problem 3-2A (Video) (Part Level Submission)

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		29,480
Ending work in process units		2,680
Percent complete—ending inventory		40	%

Cost Data
Materials		$265,320
Labor		71,824
Overhead		151,152
Total		$488,296

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

e) Prepare a production cost report for the Molding Department for the month of June

Answer 1

d
Transferred out	455600
Work in process, June 30	32696
e
ROSENTHAL COMPANY
Molding Department
Production Cost Report
For the Month Ended June 30, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, June 1	0
Started into production	29480
Total units	29480
Units accounted for
Transferred out	26800	26800	26800
Work in process, June 30	2680	2680	1072
Total units	29480	29480	27872
Costs		Materials	Conversion Costs	Total
Unit costs:
Total costs		265320	222976	488296
Equivalent units		29480	27872
Unit costs		9.00	8.00	17.00
Costs to be accounted for
Work in process, June 1				0
Started into production				488296
Total costs				488296
Cost Reconciliation Schedule
Costs accounted for
Transferred out				455600	=26800*17
Work in process, June 30
Materials			24120		=2680*9
Conversion costs			8576	32696	=1072*8
Total costs				488296