Answer and Explanation:
Stevens Company
Cost of Production Report—Department B
For the Month Ended March 31
UNITS Whole Units Direct Materials Conversion
Units charged to production:
Inventory in process, March 1 12,000
Received from Department A 55,000
Total units accounted for by Dept. B 67,000
Units to be assigned costs:
Inventory in process, March 1 (60% completed) 12,000 0 4,800
Started and completed in March 49,000 49,000 49,000
Transferred to finished goods in March 61,000 49,000 53,800
Inventory in process, March 31 (70% complete) 6,000 6,000 4,200
Total units to be assigned costs 67,000 55,000 58,000
Cost Direct Materials Conversion Total
Total costs for March in Dept. B 115,500 522,916
÷Total equivalent units 55,000 58,000
Cost per equivalent unit $2.10 $9.01
Costs charged to production: 62,400
Inventory in process, March 1 638,416
Costs incurred in March 700,816
Total costs accounted for by Department B
Cost allocated to completed and
partially completed units:
Inventory in process, March 1, balance 62,400
To complete inventory in process, March 1 0 43,276 43,276
Started and completed in March 102,900 441,774 544,674
Transferred to finished goods in March 102,900 485,050, 587,950
Inventory in process, March 31 12,600 37,866, 50,466
Total costs assigned by the Dept. B 115,500 522,916 638,416
