Submitted by: Submitted by rbenner24
Views: 397
Words: 515
Pages: 3
Category: Business and Industry
Date Submitted: 02/08/2013 05:17 PM
Process Costing
The Polishing Department of Grayson Manufacturing Company has the following production and manufacturing cost data for August. Materials are entered at the beginning of the process.
Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 18,400; ending inventory of 5,000 units 10% complete as to conversion costs.
Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $177,200; labor and overhead applied in Polishing during the month, $102,680 and $257,140, respectively.
Instructions
(a) Compute the equivalent units of production for materials and conversion costs for the month of August.
(b) Compute the unit costs for materials and conversion costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in process.
Production
Beginning Inventory = 1,600 units
100% complete as to materials and 30% complete as to conversion costs
Units started during the period are 18,400 units
Ending Inventory = 5,000 units (10% complete as to conversion costs)
Manufacturing Costs
Beginning Inventory costs:
Materials = $20,000
Conversion costs = $43,180
Materials costs added in polishing during the month = $177,200
Labor and Overhead applied in polishing during the month = $102,680 and $257,140
Units Completed and Transferred out Materials
100% complete as to materials = 1,600 units
Units started during the period = 18,400
Ending Inventory = 5,000
Units Completed and Transferred out Materials
1,600 + 18,400 - 5,000 = 15,000
Equivalent Units of ending Work in Process Materials
Equivalent units of ending work in process materials
5,000 units * 10% complete = 500 units
Equivalent units of ending work in process materials = 100% complete
Equivalent units of production...