Question

Brief Exercise 17-9 Production costs chargeable to the Finishing Department in June in Hollins Company are materials $12,000, labor $29,500, overhead $18,000. Equivalent units of production are materials 20,000 and conversion costs 19,000. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25.) Cost Reconciliation Cost accounted for Transferred out $ Work in process Materials $ Conversion costs Total cost accounted for $

Answer 1

Answer:

Transferred out 55,800

  WIP materials 10,800

  WIP conversion cost 45,000

Explanation:

Materials 12,000

Labor 29,500

Overhead 18,000

Equivalent materials 20,000

Conversion 19,000

Materials cost per equivalent unit 12,000/20,000 = 0.6

Conversion cost per equivalent unit (29,500+18,000)/19,000= 2.5

Total cost equivalent unit 3.1

Transferred out 55,800 (18,000 x 3.1)

  WIP materials 10,800 (18,000 x 0.6)

  WIP conversion cost 45,000 (18,000 x 2.5)