Question

The Sanding Department of Bonita Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 7,420 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $35,428; labor $21,000; overhead $39,150. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.) BONITA FURNITURE COMPANY Sanding Department

Answer 1

Answer:

Explanation:

Production cost report is a detailed list of cost of production including the cost of raw material and operating cost

                                 Production cost for Bonita for March 2020

                                            Units             Materials          Conversion

                                                                                                 costs

Units transferred out     7420                 7420                     7420

Work in process              3000                3000     (3000*20%)600

Total units                        10,420             10,420                   8020

Cost                              Materials         Conversion        Total

Total cost                        35428               60150           95578

Equivalent units             10420                 8020

Cost/unit                           3.40                    7.50              10.90

Cost in the month           95578

Cost reconciliation

Cost allocated to transferred out = 10.9*7420 =80878

Work in process for the month

Materials = 3000*3.40= 10200

Conversion  600*7.50 = 4500

total                                   14700

Total cost for the month = 80878+14700= 95578