Question

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 9,510 units started which is comprised of 6,510 units finished and transferred out and 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $35,948; labor $21,400; overhead $34,840.
Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)
QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2017
Equivalent Units Physical Units Conversion Costs Quantities Units to be accounted for Materials Work in process, March 1 Started into production Total units Units accounted for Transferred out Work in process, March 31 Total units
Conversion Costs Total Costs Unit costs Materials Total Costs Equivalent units Unit costs Costs to be accounted for Work in process, March 1 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, March 31 Materials Conversion costs Total costs

Answer 1

Answer:

Quick Furniture Company

The Sanding Department

Production Report

For the month of March 2017:

                                           Materials     Conversion     Total

Manufacturing costs          $35,948    $56,240        $92,188

Cost per equivalent unit:

Manufacturing costs          $35,948    $56,240

Equivalent units                    9,510            7,110

Cost per equivalent unit      $3.78         $7.91

Cost assigned to:

Units transferred out          $24,608      $51,494         $76,102

Ending Work in Process      $11,340        $4,746            16,086

Total costs assigned         $35,948     $56,240          $92,188

Explanation:

a) Data and Calculations:

                                          Materials     Conversion

Units started        9,510

Units completed  6,510      6,510           6,510

Ending WIP          3,000     3,000             600

Equivalent units                  9,510            7,110

Production Cost Report:

                                          Materials     Conversion     Total

Manufacturing costs          $35,948    $56,240        $92,188

Cost per equivalent unit:

Manufacturing costs          $35,948    $56,240

Equivalent units                    9,510            7,110

Cost per equivalent unit      $3.78         $7.91

Cost assigned to:

Units transferred out          $24,608      $51,494         $76,102  

                                ($3.78 * 6,510)    ($7.91 * 6,510)

Ending Work in Process      $11,340        $4,746            16,086

                                 ($3.78 * 3,000)    ($7.91 * 600)

Total costs assigned         $35,948     $56,240          $92,188