Question

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,240 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 $36,960; labor $21,400; overhead $30,242.Required:Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)

Answer 1

Answer:

                                Quik Furniture Company

              Production cost report - Sanding department

                         Month ended on March 31, 2020

Units                           Physical units                   Equivalent units

                                                                Materials                 Conversion          

Units started                    9,240

in production                                                                                              

Completed and               6,240

transferred out

Work in progress                                       3,000                          600      

Total units                       6,240                 3,000                          600

accounted for

Costs                                          Direct               Conversion       Total

                                                   materials          costs

Beginning WIP                              $0                     $0                     $0

Costs added during                  $36,960           $51,642            $88,602

period                                                                                                          

Total costs                                 $36,960           $51,642            $88,602  

Cost per unit                                  $4                  $7.55                 $11.55

                                                  (9,240 u.)         (6,840 u.)       (finished u.)