Question

Production costs chargeable to the Finishing Department in June in Waterway Company are materials $16,524, labor $21,602, overhead $19,700. Equivalent units of production are materials 20,400 and conversion costs 19,300. Production records indicate that 18,200 units were transferred out, and 2,200 units in ending work in process were 50% complete as to conversion costs and 100% complete as to materials. Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 125.)

Answer 1

Answer:

Cost Per Equivalent Unit Materials 0.81    Conversion 2.14

Completed Units Costs $ 53690

Ending Work In Process Costs  $ 4136

Total Costs  $ 57826

Explanation:

Waterway Company

Finishing Department

                                                           Materials        Conversion

Costs                                                   $16,524,        $21,602 + $19,700

                                                                                       $ 41302

Equivalent units of production        20,400                   19,300

Cost Per Equivalent Unit          16524/20400= 0.81      41302/19300= 2.14

We find the Cost per Equivalent unit and then multiply with the completed units and Ending work in process units to get their costs.

Completed Units Costs $ 53690

Materials = 18200* 0.81 = 14742

Conversion= 18200 * 2.14= 38948

Total Costs     $ 53690

Ending Work In Process Costs  $ 4136

Materials = 2200* 0.81 = 1782

Conversion= 2200 * 50 % * 2.14= 2354

Total Costs     $ 4136

Total Costs Accounted For = Completed Units Costs $ 53690 + Ending Work In Process Costs  $ 4136= $ 57826

Total Costs Added  During the process =   Materials + Conversion = $16,524,+ $ 41302=

$ 57826