PROBLEM 3 - Units Materials Conversion Costs(Step 1(Step 2...

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PROBLEM 3-2A (a) Physical units Units to be accounted for Work in process, January 1 Started into production Total units Units accounted for Completed and transferred out Work in process, January 31 Total units 0 43,000 43,000 40,000 3,000 43,000 (b) Equivalent units Materials Conversion Costs Units transferred out Work in process, January 31 3,000 X 100% 3,000 X 40% Total equivalent units 40,000 3,000 00,000 43,000 40,000 1,200 41,200 (c) Unit Costs Materials Conversion costs Total manufacturing $12.80 ($550,400 ÷ 43,000) $7.20 ($296,640* ÷ 41,200) $20.00 ($12.80 + $7.20) *$126,640 + $170,000 (d) Costs accounted for Transferred out (40,000 X $20.00) $800,000 Work in process, January 31 Materials (3,000 X $12.80) $38,400
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Conversion costs (1,200 X $7.20) 8,640 47,040 Total costs $847,040
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PROBLEM 3-2A (Continued) (e) ZION CORPORATION Molding Department Production Cost Report For the Month Ended January 31, 2005 Equivalent Units Quantities Physical
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Unformatted text preview: Units Materials Conversion Costs (Step 1) (Step 2) Units to be accounted for Work in process, January 1 Started into production Total units Units accounted for Transferred out 43,000 43,000 40,000 40,000 40,000 Work in process, January 31 3,000 3,000 1,200 (3,000 X 40%) Total units 43.000 43,000 41,200 Costs Materials Conversion Costs Total Unit costs (Step 3) Costs in January Equivalent units Unit costs [(a) ÷ (b)] Costs to be accounted for Work in process, January 1 Started into production Total costs (a) (b) $550,400 43,000 $12.80 $296,640 41,200 $7.20 $847,040 $20 $ 847,040 $847,040 Cost Reconciliation Schedule (Step 4) Costs accounted for Transferred out (40,000 X $20) Work in process, January 31 Materials (3,000 X $12.80) Conversion costs (1,200 X $7.20) Total costs $38,400 8,640 $800,000 47,040 $847,040...
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This note was uploaded on 05/16/2011 for the course AC 303 taught by Professor Richardkido during the Spring '11 term at Chaminade University.

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PROBLEM 3 - Units Materials Conversion Costs(Step 1(Step 2...

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