Question

E16.13 (LO 3, 4) The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Prepare a production cost report. Production Data Beginning work in process Manufacturing Costs Beginning work in process Materials $18,000 Conversion costs 14,175 Materials Labor Overhead $ 32,175 180,000 67,380 61,445 Units transferred out Units started Ending work in process 15,000 units 1/10 complete 55,000 51,000 11,000 units 1/5 complete

Answer 1

Answer

• Elements of Product Cost report are provided below

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	55,000	100%	55,000	100%	55,000
Units of ENDING WIP	11,000	100%	11,000	20%	2,200
Equivalent Units of Production			66,000		57,200
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          18,000.00		$                                  14,175.00
Cost incurred during the period			$        180,000.00		$                                128,825.00
Total Costs		Costs	$        198,000.00	Costs	$                                143,000.00
Equivalent units of production		EUP	66,000	EUP	57,200
Cost per EUP			$              3.00000		$                                      2.50000

Total Cost to account for:
Cost of beginning WIP	$                      32,175.00
Costs incurred this period	$                    308,825.00
Total Cost to account for	$                    341,000.00
Total costs accounted for	$                    341,000.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	15,000
Units started this period	51,000
Total Units to account for	66,000
Total Units accounted for:
Completed & Transferred out	55,000
Ending WIP	11,000
Total Units accounted for	66,000

TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	55,000	$                      3.00	$        165,000.00
- Conversion	55,000	$                      2.50	$        137,500.00
Total Cost transferred Out				$            302,500.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	11,000	$                      3.00	$          33,000.00
- Conversion	2,200	$                      2.50	$             5,500.00
Total cost of ending WIP				$              38,500.00
Total costs accounted for					$                                341,000.00