NEX conversion costs costs Materials 33487 labor 21400 overh

NEX conversion costs. costs: Materials $33,487; labor $21,400; overhead $35,627 (Round unit costs to 2 decimal places,.2.25 QUIK FURNITURE COMPANY Sanding Units to be accounted for Total units 9380 Transferred out Total units Conve

Solution

QUICK FURNITURE COMPANY Sanding Department Production Cost report For the Month Ended March 31, 2017 Equivalent Units #1 Physical Units Materials Conversion Costs Units to be accounted for: Work in Process, March 1 0 Started into Production 9380 Total Units 9380 Units Accounted for: Transferred out 6380                   6,380                       6,380 Work in process 3000                   3,000                           600 Total Units 9380                   9,380                       6,980 Working: a. Calculation of total units to be accounted for: Units transferred out 6380 Units in Ending work in process 3000 Total Units to be accounted for 9380 # Since this is the first month of operation , nothing will be in the work in process in beginning inventory. Work in process inventory is the inventory that is partially completed. b. Calculation of Equivalent units of production (EUP) Materials Conversion Costs Physical Units % of completion EUP-Materials % of completion EUP-Materials Units finished ans transferred out                6,380 100%                   6,380 100%                   6,380 Units in ending work in process                3,000 100%                   3,000 20%                       600 Total                9,380                   9,380                   6,980 # 2 Materials Conversion Cost Total Unit Cost: Total Costs $            33,487 $         57,027 $         90,514 Equivalent Units                   9,380                6,980 Unit Cost $                 3.57 $              8.17 $           11.74 # 3 Cost to be accounted for: Work in process, March 1 0 Started into production $         90,514 Total Costs $         90,514 # 4 Cost Reconcilation Schedule: Cost Accountted for: Transferred out $         74,902 Work in process: Materials $         10,710 Conversion Costs $            4,902 $         15,612 Total Costs $         90,514 Working: a. Costs of units finished and transferred out = Units completed x Cost per unit of finished gods =               6,380 x         11.74 =             74,902 b. Costs of Ending Work in process: Equivalent units Unit Costs Total Materials                3,000                  3.57                10,710 Coversion Costs                    600                  8.17                   4,902