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Production Cost Report

Please helps with the following problems.

Month of Dec
Units of completion Costs

Beginning wip inventory, Dec 20,000
direct materials 80% 200,000
conversion costs 90% 450,000

Units started in Dec 50,000

Costs incurred in Dec
direct materials 270,000
conversion costs 360,000

Ending wip inventory 25,000
direct materials 30%
conversion costs 40%

a. Prepare a production cost report for Dec
b. Prepare the journal entry to recognize the transfer of the units completed to finished goods inventory during Dec.

Solution Summary

The following solution explains how to prepare a production cost report. The explanation is given in a Excel spreadsheet.