Cost of Production summary, Two Departments; Beginning Inventory Aero Aluminum I
ID: 2342321 • Letter: C
Question
Cost of Production summary, Two Departments; Beginning Inventory Aero Aluminum Inc. uses a process cost system. The records for May show the following information: Production Report Rolling Converting 10,000 5,000 20,000 Received from prior department . .. . . . . . . . . .. .. 15,000 15,000 5,000 5,000 1/5 10,000 15,000 1/3 Production Costs Work in process, May 1 Costs transferred in from Rolling $50,000 5,000 5,500 3,500 . . . . . . . . $5,000 6,450 3,550 Costs incurred during the month 40,000 37,000 45,000 44,000 $147,000 Required:Explanation / Answer
Cost of Production summary for Departments Cost of WIP may 1 material 5000 labour 6450 factory overhead 3550 total (1) 15000 cost of production for month material 37000 labour 45000 factory overhead 50000 total (2) 132000 total cost to be accounted for (1)+(2) 147000 output unit for month finished and transferred to converting 15000 finished & on hand 5000 equivalent unit of WIP may 31 ,5000*1/5completed 1000 total 21000 unit cost for month material 2 labour 2.45 factory overhead 2.55 total 7 inventory cost cost of goods finished & tranferred to converting during month 105000 cost of goods finished and on hand 35000 cost of WIP MAY 31 material 2000 labour 2450 factory overhead 2550 7000 total production cost accounted for 147000 Cost of production summary converting for month ended may 31 cost of WIP in may 1 cost in rolling 50000 cost in converting material 5000 labour 5500 factory overhead 3500 14000 64000 Cost of goods received from rolling during month cost of production in converting for month material 40000 labour 44000 factory overhead 37000 121000 total cost to be accounted for 290000 unit output for month finished & transfrred to finished goods 10000 equivalent unit of WIP MAY 31 5000 total equivalent production 15000 unit cost for month cost of rolling unit cost unit cost beginning inventory 10000 unit 50000 transferred in this month 15000 unit 105000 average cost per unit 25000 unit 155000 6.2 cost in converting material 3 labour 3.3 factory overhead 2.7 total 9 inventory cost cost of goods finished & transfrred cost in rolling 105000 cost in converting 90000 195000 cost of WIP MAY31 cost in rolling 50000 50000 cost in converting material 15000 labour 16500 factory overhead 13500 45000 95000 total production cost accounted for 290000