Prepare a cost of production report for the Cutting Department of Aladdin Carpet
ID: 2348827 • Letter: P
Question
Prepare a cost of production report for the Cutting Department of Aladdin Carpet Company for May 2008, using the following data and assuming that all materials are added at the beginning of the process:
Work in process, May 1, 5,000 units, 75% completed $49,800
*Direct materials (5,000*$6.00) $30,000
Conversion (5,000 * 75% * $5.28) $19,800
$49,800
Materials added during May from Weaving Department, 186,000 units 1,134,600
Direct labor for May 405,600
Factory overhead for May 540,436
Goods finished during May( includes goods in process, May 1), 183,400 units
Work in process, May 31, 7,600 units, 30% completed
how to find the complete inventory in process for direct materials
Explanation / Answer
Units accounted for Beginning WIP 5,000 Transfer from Weaving dept. 186,000 Total 191,000 Units completed 183,400 Ending WIP 7,600 Total 191,000 Equivalent Production Report Total Units Materials Conversion Beginning WIP 5,000 - 1,250 Completed units 178,400 178,400 178,400 Ending WIP 7,600 7,600 2,280 191,000 186,000 181,930 Total costs Materials Conversion Cost from Weaving department $1,134,600 $1,134,600 Cost during the month $946,036 $946,036 Total $2,080,636 $1,134,600 $946,036 Cost per unit $1,134,600/186,000 $6.10 $946,036/181,930 $5.20 Cost involved Beginning WIP ($30,000 + $19,800) $49,800 Materials from Weaving dept. $1,134,600 Cost for the month $946,036 Total cost $2,130,436 Cost Allocation Beginning WIP $49,800 Cost of completion (1,250 x $5.20) $6,500 Materials from Weaving Dept. (178,400 x $6.10) $1,088,240 Conversion cost (178,400 x $5.20) $927,680 Started and completed in May $2,072,220 Ending WIP ========= Materials 7,600 x $6.10 $46,360 Conversion 2,280 x $5.20 $11,856 Total Ending WIP $58,216