Question

The Sanding Department of Bonita Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 7,420 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $35,428; labor $21,000; overhead $39,150. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.) BONITA FURNITURE COMPANY Sanding Department

Answer 1

Step-by-step explanation:

Production cost report is a detailed list of cost of production including the cost of raw material and operating cost

Production cost for Bonita for March 2020

Units Materials Conversion

costs

Units transferred out 7420 7420 7420

Work in process 3000 3000 (3000*20%)600

Total units 10,420 10,420 8020

Cost Materials Conversion Total

Total cost 35428 60150 95578

Equivalent units 10420 8020

Cost/unit 3.40 7.50 10.90

Cost in the month 95578

Cost reconciliation

Cost allocated to transferred out = 10.9*7420 =80878

Work in process for the month

Materials = 3000*3.40= 10200

Conversion 600*7.50 = 4500

total 14700

Total cost for the month = 80878+14700= 95578