Cost of Production Report -oocolate Company processes chocolate ito candy bars.
ID: 2523756 • Letter: C
Question
Cost of Production Report -oocolate Company processes chocolate ito candy bars. The process begins by placing dre t materials (ra·chocolate, m k nd suur) into the 81ending Opartmot All materials are placed into production the begining of the ble iv process. After blending, the mäk chocolate is then transferred to the Malding Department, where the mik chocolate is formed into candy bars. The follioning is a partial work in process account of the tlending Department at March 31, 2016 Balence ate 18,370 1 Bal., 5,500 units, 4S completed 31 Direct 31 Direct labo 1 Factory overhead 1 Goods transferred, 221,000 units materials, 220,000 units 788,510 1. Prepare a cost of production report, and lidentiy the missing anousts for Wark in Process-Blending Department. If an amount is zere, enter "0, When computing cost per equivalent units, round to two decimall places clate Comany Unts tharged to productio Total units accounted for by the nding Depatmat unts to be assigned Started and compled 1 more CheckExplanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 5,500 Add: Units Started in Process 220,000 Total Units to account for: 225,500 Equivalent Units: Whole units Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 5500 0% 0 20% 1,100 Units started and completed 215500 100% 215,500 100% 215,500 Transferred to Molding deptt 221000 215,500 216,600 Ending Work in Process 4500 100% 4,500 80% 3,600 Total Equivalent units 220,000 220,200 TOTAL COST TO ACCOUNT FOR: COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 616,000 154,140 Equivalent Units 220,000 220,200 Cost per Equivalent unit 2.8 0.7 Cost charged to production: Material Convesion Total Inventory in Beg. 18370 Current cost of manufacture 770140 Total cost to be accounted for: 788510 Cost allocated to completed and partially completed units: Inventory in Beg. 18370 Cost to complete 0 770 770 Cost of completed Beg. WIP 19140 Started and completed 603400 150850 754250 Transfrred to Molding 773390 Inveentory in Mar31 12600 2520 15120 Total cost assigned 788510 Req 2: Material cost per unit in last year (14850/5500): 2.7 Conversion cost perr unit last year(18370-14850)/4400: 0.8 Change in material Increase 0.1 Change in conversion Decrease 0.1