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:

10,000 units started which is comprised of 7,000 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 $33,000
Labor $21,000
Overhead $36,000

Required:
Prepare a production cost report.

Answer 1

Quick Furniture Company

The Sanding Department

Production Report

For the month of March 2017:

Production Cost Report:

Materials Conversion Total

Manufacturing costs $33,000 $57,000 $90,000

Cost per equivalent unit:

Manufacturing costs $33,000 $57,000

Equivalent units 10,000 7,600

Cost per equivalent unit $3.30 $7.50

Cost assigned to:

Units transferred out $23,100 $52,500 $75,600

Ending Work in Process $9,900 $4,500 14,400

Total costs assigned $33,000 $57,000 $90,000

Step-by-step explanation:

a) Data and Calculations:

Materials Conversion

Units started 10,000

Units completed 7,000 7,000 7,000

Ending WIP 3,000 3,000 600

Equivalent units 10,000 7,600

Production Cost Report:

Materials Conversion Total

Manufacturing costs $33,000 $57,000 $90,000

Cost per equivalent unit:

Manufacturing costs $33,000 $57,000

Equivalent units 10,000 7,600

Cost per equivalent unit $3.30 $7.50

Cost assigned to:

Units transferred out $23,100 $52,500 $75,600

($3.30 * 7,000) ($7.50 * 7,000)

Ending Work in Process $9,900 $4,500 14,400

($3.30 * 3,000) ($7.50 * 600)

Total costs assigned $33,000 $57,000 $90,000