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AP3-8 Production Cost Report, Missing Information [LO 2,3,4,5] Marion Chemicals

ID: 2351072 • Letter: A

Question

AP3-8

Production Cost Report, Missing Information [LO 2,3,4,5]

Marion Chemicals produces a chemical used as a base in paints. In the manufacturing process, all materials are added at the start of the process, whereas labor and overhead are added evenly throughout production.

Fill in the missing information in Marion's Production Cost Report for the month of December. (Enter total cost per equivalent unit to 2 decimal places, e.g. 5.25.)

Marion Chemicals
Production Cost Report
December 2011
Unit Reconciliation
Units in beginning WIP (100% material, 10% conversion costs) 9,000
Units started during December
Units to account for

Units completed
Units in ending WIP (100% material, 20% conversion costs) 4,400
Units accounted for

Cost Per Equivalent Unit Calculation
Material Labor Overhead Total
Cost
Beginning WIP $45,500 $13,900 $29,600 $89,000
Cost incurred in December
Total

Units
Units completed
Equivalent units, ending WIP
Total

Cost per equivalent unit $2.20 $1.80 $2.90

Cost Reconciliation
Total cost to account for $3,556,276

Cost of completed items $3,542,460
Cost of ending WIP
Material $______
Labor
Overhead
Total cost accounted for $3,556,276

Explanation / Answer

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