Question

Loanstar had 150 units in beginning inventory before starting 950 units and completing 900 units. The beginning work in process inventory consisted of $2,000 in materials and $4,000 in conversion costs before $7,900 of materials and $13,280 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 30% complete with regard to conversion costs. Use the above information to complete a production cost report. Enter all amount as positive values.

Answer 1

Loanstar

Production Report:

Units Materials Conversion Total

Beginning WIP 150 $2,000 $4,000 $6,000

Started 950 7,900 13,280 21,180

Total 1,100 $9,900 $17,280 $27,180

Completed 900 900 900

Ending WIP 200 200 (100%) 60 (30%)

Total equivalent units 1,100 960

Cost per equivalent unit $9 $18

Cost assigned to:

Units completed $8,100 $16,200 $24,300

Ending WIP 1,800 1,080 2,880

Total cost of production $9,900 $17,280 $27,180

Step-by-step explanation:

a) Data and Calculations:

Units Materials Conversion Total

Beginning WIP 150 $2,000 $4,000 $6,000

Started 950 7,900 13,280 21,180

Total 1,100 $9,900 $17,280 $27,180

Completed 900 900 900

Ending WIP 200 200 (100%) 60 (30%)

Total equivalent units 1,100 960

Cost per equivalent unit $9 $18

Cost assigned to:

Units completed $8,100 $16,200 $24,300

Ending WIP 1,800 1,080 2,880

Total cost of production $9,900 $17,280 $27,180