Problem 16-6A (Part Level Submission) Hamilton Processing Company uses a weighte
ID: 2412846 • Letter: P
Question
Problem 16-6A (Part Level Submission) Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product-an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking department is as follows ? (a) Prepare a schedule that shows how the equivalent units were computed so that you can complete the "Quantities: Units accounted for" equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) HAMILTON PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Physical Units Conversion Costs Quantities Materials Units to be accounted for Work in process, October 1 (all materials, 70% conversion costs) Started into production 21,000 157,500 178,500 Total units Units accounted for 126,000 52,500 178,500 Transferred out Work in process, October 31 (60% materials, 40% conversion costs) Total units accounted for Conversion Costs Costs Materials Total Unit costs Total Costs $252,000 $110,250 $362,250 Equivalent units Unit costs Costs to e accounted for Work in process, October 1 Started into production $31,500 330,750 $362,250 Total costsExplanation / Answer
1) HAMILTON PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month ended October 31 Equivalent Units Quantities Physical Units Materials Conversion Cost Units to be accounted for Work in process, October 1 21,000 (all materials, 70% conversion costs) Started into production 1,57,500 Total Units 1,78,500 Units accounted for Transferred out 1,26,000 1,26,000 1,26,000 Work in process, October 31 52,500 31,500 21,000 (60% materials, 40% conversion costs) (52500*60%) (52500*40%) Total Units accounted for 1,78,500 1,57,500 1,47,000 2) Costs Materials Conversion Costs Total Total Costs a $ 2,52,000 $ 1,10,250 $ 3,62,250 Equivalent Units b 1,57,500 1,47,000 Unit Cost a/b $ 1.60 $ 0.75 3) Costs to be accounted for Work in process $ 31,500 Started into production $ 3,30,750 Total Costs $ 3,62,250 Costs accounted for: Costs of Units completed $ 2,96,100 Costs of Ending units in process $ 66,150 Total Costs $ 3,62,250 Working: EUP Cost per EUP Total Cost Costs of Units completed: Materials 1,26,000 $ 1.60 $ 2,01,600 Conversion 1,26,000 $ 0.75 $ 94,500 $ 2,96,100 Costs of Ending Units in process: Materials 31,500 $ 1.60 $ 50,400 Conversion 21,000 $ 0.75 $ 15,750 $ 66,150