Question

During Year 3, Anywhere, Inc. (AI) incurred the following product costs. Raw materials $ 78,000 Labor 94,288 Overhead 66,000 The Year 2 ending balance in the Work in Process (WIP) account was $34,000. Accordingly, this is the beginning WIP balance for Year 3. There were 125 units of product in beginning WIP inventory. AI started 1,940 units of product during Year 3. Ending WIP inventory consisted of 110 units that were 70 percent complete. Required Prepare a cost of production report by filling in the cells that are left blank.

Answer 1

Units Complete 1955

Total Product Costs $ 272,288

$ 139.28 per EUP

Total Costs Accounted For = $ 272,292.4

Step-by-step explanation:

Anywhere, Inc. (AI)

Physical Flow of Units

Beginning Units 125

Units Started 1940

Total units Available for Completion 2065

Less Ending Inventory 110

Units Complete 1955

Total Products Costs

Beginning Inventory Costs $34,000

Material Costs $ 78,000

Labor 94,288

Overhead 66,000

Total Product Costs $ 272,288

Cost Per Equivalents Units

Cost Per Equivalent Unit= Total Cost/ Equivalent Units

= 272288/1955

=139.277

= $ 139.28 per EUP

Costs Accounted For:

Cost Transferred to Finished Goods= ( 1955- 77=1878)*139.28= $261567.84

Ending Inventory Costs = (110*0.7=77)*139.28= 10724.39

Total Costs Accounted For = $ 272,292.4

Which is the almost the same as the given costs

Given Costs= $ 272,288

Costs Accounted For $ 272,292.4

The difference of $4 is due to rounding off.