PROBLEM 3

# 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
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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