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Batista Manufacturing, Podsednik, Hancock: equivalent units

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 $

Attachments

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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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