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    Batista Manufacturing, Podsednik, Hancock: equivalent units

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    The Welding Department of Batista Manufacturing Company has the following production and manufacturing cost data for February 2008. All materials are added at the beginning of the process.
    Manufacturing Costs Production Data
    Beginning work in process Beginning work in process 15,000 units
    Materials $18,000 1/10 complete
    Conversion costs 14,175 $32,175 Units transferred out 49,000
    Materials 180,000 Units started 60,000
    Labor 32,780 Ending work in process 26,000 units
    Overhead 61,445 1/5 complete

    Instructions
    Prepare a production cost report for the Welding Department for the month of February.
    BATISTA MANUFACTURING COMPANY
    Welding Department
    Production Cost Report
    For the Month of February 28, 2008
    Equivalent Units
    Quantities Physical Units Materials Conversion Costs
    Units to be accounted for
    Work in process, February 1

    Started into production

    Total units

    Units accounted for
    Transferred out

    Work in process, February 28

    Total units

    Costs Materials Conversion Costs Total
    Unit costs
    Costs in February $
    $
    $

    Equivalent units

    Unit costs $
    $
    $

    Cost to be accounted for
    Work in process, February 1 $

    Started into production

    Total costs $

    Cost Reconciliation Schedule
    Costs accounted for
    Transferred out $

    Work in process, February 28
    Materials $

    Conversion costs

    Total costs $

    3) Podsednik Company has gathered the following information.
    Units in beginning work in process -0-
    Units started into production 36,000
    Units in ending work in process 6,000
    Percent complete for conversion costs in ending work in process 40%
    Costs incurred:
    Direct materials $72,000
    Direct labor $81,000
    Overhead $97,200

    Compute equivalent units of production for materials and for conversion costs.
    Materials

    Conversion costs

    Determine the unit costs of production.
    Unit cost-Materials $

    Unit cost-Conversion costs $

    Show the assignment of costs to units transferred out and in process.
    Units transferred out $

    Units in ending work in process $

    4) The Blending Department of Hancock Company has the following cost and production data for the month of April.
    Costs:
    Work in process, April 1
    Direct materials: 100% complete $100,000
    Conversion costs: 20% complete 70,000
    Cost of work in process, April 1 $170,000

    Costs incurred during production in April
    Direct materials $800,000
    Conversion costs 362,000
    Costs incurred in April $1,162,000
    Units transferred out totaled 14,000. Ending work in process was 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs.

    Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April.
    Materials

    Conversion costs

    Compute the unit costs for the month.
    Unit cost-Materials $

    Unit cost-Conversion costs $

    Determine the costs to be assigned to the units transferred out and in ending work in process.
    Transferred out $

    Work in process
    Materials $

    Conversion costs

    Total costs $

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    Question 2
    Batista Manufacturing Company
    Welding Department
    Production Cost Report
    For the Month of February

    Quantities Physical Units Equivalent Units
    Material Conversion
    Units to be accounted for
    Work in Process, Feb 1 15,000
    Started into Production 60,000
    Total Units 75,000
    Units Accounted for
    Transferred Out 49,000 49,000 49,000
    WIP, Feb 28 26,000 26,000 5,200
    Total Units 75,000 75,000 54,200
    Costs
    Unit Costs Material Conversion Total
    WIP 18,000 14,175 32,175
    Costs in Month 180,000 94,225 274,225
    Costs in February 198,000 108,400 306,400
    Equivalent Units 75,000 54,200
    Unit Costs 2.64 2.00 4.64
    Cost Reconciliation Schedule
    Costs to be accounted for
    WIP, Feb 1 ...

    Solution Summary

    The solution explains how to prepare a production cost report.

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