Question

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,240 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 $36,960; labor $21,400; overhead $30,242.Required:Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)

Answer 1

Quik Furniture Company

Production cost report - Sanding department

Month ended on March 31, 2020

Units Physical units Equivalent units

Materials Conversion

Units started 9,240

in production

Completed and 6,240

transferred out

Work in progress 3,000 600

Total units 6,240 3,000 600

accounted for

Costs Direct Conversion Total

materials costs

Beginning WIP $0 $0 $0

Costs added during $36,960 $51,642 $88,602

period

Total costs $36,960 $51,642 $88,602

Cost per unit $4 $7.55 $11.55

(9,240 u.) (6,840 u.) (finished u.)