Answer:
<u>Welding Department </u>
<u>Production cost report for the month of February</u>
Inputs :
Beginning Work In Process :
Materials $18,100
Conversion costs $14,460
Added During the year :
Materials $218,685
Labor $67,100
Overhead $58,531
Total $376,876
Outputs :
Completed and Transferred Out $328,000
Units still in Process $48,076
Total $376,876
Explanation:
<u>Calculation of Equivalent Units of Production with Respect to Materials and Conversion Costs.</u>
1. Materials
Ending Work In Process (11,900 × 100%) 11,900
Units Completed and Transferred Out (54,800 × 100%) 54,800
Equivalent Units of Production with Respect to Materials 66,700
2. Conversion Costs
Ending Work In Process (11,900 × 1/5) 2,380
Units Completed and Transferred Out (54,800 × 100%) 54,800
Equivalent Units of Production with Respect to Materials 57,180
<u>Calculation of Cost per Equivalent Unit of Production with Respect to Materials and Conversion Costs.</u>
Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units
1. Materials
Cost per Equivalent Unit = ($18,100 + $218,685) ÷ 66,700
= $3.55
2. Conversion Cost
Cost per Equivalent Unit = ($14,460 + $67,100 + $58,531) ÷ 57,180
= $2.45
3. Total Cost
Total Cost = Materials + Conversion Cost
= $3.55 + $2.45
= $6.00
<u>Calculation of Total Cost of Units Completed and Transferred Out and Total Cost of Units still in Process.</u>
Completed and Transferred Out = Units Completed and Transferred Out × Total Cost
= 54,800 × $6.00
= $328,000
Units still in Process = Material Cost + Conversion Cost
= $3.55 × 11,900 + $2.45 × 2,380
= $48,076
