Simply Shine Shampoo is manufactured in two departments: Mixing and Packing. Onc
ID: 2421299 • Letter: S
Question
Simply Shine Shampoo is manufactured in two departments: Mixing and Packing. Once the shampoo mixture is completed in the Mixing Department, it is sent to Packaging, where a machine fills and seals individual bottles, which are then passed to a machine that places the bottles in individual boxes.
The following information is related to production in March:
Prepare production costs reports for Mixing and Packing for the month of March. (Round cost per equivalent unit answers to 5 decimal places, e.g. 15.25254 and other answers to 0 decimal places, e.g. 5625.)
Cost per Equivalent Unit Calculation
Material
Labor
Overhead
Total
Cost
Beginning work in process
Cost incurred during March
Total
Units
Units completed
Equivalent units
Ending work in process
Total
Cost per equivalent unit
Cost Reconciliation
Total cost to account for
Cost of completed units
Cost of ending WIP
Total cost accounted for
Cost per Equivalent Unit Calculation
Material
Labor
Overhead
Trans.In
Total
Cost
Beginning work in process
Cost incurred during March
Total
Units
Units completed
Equivalent units
Ending work in process
Total
Cost per equivalent unit
Cost Reconciliation
Total cost to account for
Cost of completed units
Cost of ending WIP
Total cost accounted for
Mixing Packing Unit Information Beginning Work in Process (Mixing: 100% material, 80% conversion costs) 15,500 (Packing: 50% material, 40% conversion costs) 20,000 Started during March: 700,000 674,300 Ending Work in Process (Mixing: 100% material, 60% conversion costs) 41,200 (Packing: 90% material, 70% conversion costs) 40,000 Cost Information, Beginning Work in Process Direct material $ 8,850 $ 940 Direct labor 1,260 70 Manufacturing overhead 2,540 120 Transferred-in cost — 3,800 Cost Added during March Direct material $ 264,300 $ 86,600 Direct labor 78,700 10,000 Manufacturing overhead 127,700 20,000 Transferred-in cost — 460,190Explanation / Answer
Mixing Department, Simply Shine Shampoo-March Unit Reconciliation Units Equivalent Units Material Labor & Manufacturing Overhead WIP in the begining 15500 Started During March 700000 Units to Account for 715500 Units Completed and Transferred to Packing Deptt. 674300 674300 674300 WIP in the end 41200 41200 24720 Units accounted For 715500 715500 699020 Calculation of Cost per Equivalent Unit Material Labor Manufacturing Overhead Total WIP in the Beginning 8,850 1,260 2,540 12,650 Cost Incurrecd during March 264,300 78,700 127,700 470,700 Total 273,150 79,960 130,240 483,350 Units Units Completed Equivalent Units 674300 674300 674300 Ending WIP 41200 24720 24720 Total 715500 699020 699020 Cost per Equivalent Units 0.38 0.11 0.19 Cost Reconcilation Particulars Amount Total Cost to Account For 483,350 Cost of Completed units Material 257,422 Labour 77,133 Manufacturing Overhead 125,634 Total Cost of Completed Goods 460,190 Cost of ending WIP Material 15,728 Labour 2,827 Manufacturing Overhead 4,606 Total Cost of Ending WIP 23,160 Total Cost Accounted For 483,350 Packing Department, Simply Shine Shampoo-March Unit Reconciliation Units Equivalent Units Material Labor & Manufacturing Overhead WIP in the begining 20000 Transferred from Mixing deptt 674300 Units to Account for 694300 Units Completed 654300 654300 654300 WIP in the end 40000 36000 28000 Units accounted For 694300 690300 682300 Calculation of Cost per Equivalent Unit Material Labor Manufacturing Overhead Transferred in Costs Total WIP in the Beginning 940 70 120 3,800 4,930 Cost Incurrecd during March 264,300 78,700 127,700 460,190 930,890 Total 265,240 78,770 127,820 463,990 935,820 Units Units Completed Equivalent Units 654300 654300 654300 654300 Ending WIP 36000 28000 28000 40000 Total 690300 682300 682300 694300 Cost per Equivalent Units 0.38 0.12 0.19 0.67 Cost Reconcilation Particulars Amount Total Cost to Account For 935,820 Cost of Completed units Material 251,407 Labour 75,537 Manufacturing Overhead 122,575 Transferred in cost 437,259 Total Cost of Completed Goods 886,778 Cost of ending WIP Material 13,833 Labour 3,233 Manufacturing Overhead 5,245 Transferred in cost 26,731 Total Cost of Ending WIP 49,042 Total Cost Accounted For 935,820