Cost of Production Report: No Beginning Inventories Howell Paving Company manufa
ID: 2341430 • Letter: C
Question
Cost of Production Report: No Beginning Inventories
Howell Paving Company manufactures asphalt paving materials for highway construction through a one-step process in which all materials are added at the beginning of the process. During April 2017, the company accumulated the following data in its process costing system:
Manufacturing overhead is applied at the rate of $6 per equivalent unit (ton) processed.
Prepare a cost of production report for April.
Materials
Conversion
Total
Production data Work-in-process, 4/1/17 0 tons Raw materials transferred to processing 25,000 tons Work-in-process, 4/30/17 (75% converted) 5,000 tons Cost data Raw materials transferred to processing $650,000 Conversion costs Direct labor cost incurred $47,500 Manufacturing overhead applied ?Explanation / Answer
Cost production report for the year ending april 30 2017 Particulars material Conversion total unit completed 20000 20000 add: equivalent unit in ending inventory 5000 3750 equivalent unit in process 25000 23750 total cost to accounted for and cost per equivalent unit in process beginning WIP 0 0 0 Current cost 650000 190000 840000 total cost in process 650000 190000 840000 cost per equivalent unit in process 26 8 34 Accounting for total costs amount transferred out 680000 ending WIP Material (5000*26) 130000 conversion (3750*8) 30000 160000 total cost accounted for 840000 manufacturing overhead applied = (23750*6+47500)=190000