Manufacturing Inc manufactures plastic thingamajigs Material

Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning
of the production process and conversion costs are incurred uniformly. Production and cost
data for the month of June, 2016 are as follows.
	Production data			Units		Percent Complete
	Work in process units, June 1		2,425		57%
	Units started into production		6,225
	Work in process units, June 30		2,960		41%
	Cost data
	Work in process, June 1
	Materials		$7,550
	Coversion costs		5,800	$13,350
	Direct materials			24,300
	Direct labor			15,850
	Manufacturing overhead		12,750
Instructions:
Prepare a production cost report for the month of June, making sure to show equivalent
units of production for materials and conversion costs, unit costs of production for materials
and conversion costs, and the assignment of costs to units transferred out and in process at
the end of June.
THIS ASSIGNMENT MUST BE COMPLETED IN EXCEL. You should develop an efficient and
customizable production cost report, using formulas whenever possible instead of keyed in
values. No numeric values except the ones shown above should need to be keyed in.

Solution

Weighted Average Method Production Cost Report Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning                    2,425 Started into production                    6,225 Total units                    8,650 Units accounted for Transferred out - 8,650 Units - 2,960 Units                    5,690                    5,690                    5,690 Work in process, Ending                    2,960                    2,960                    1,214 (100% - materials, 41% conversion costs) Equivalent units accounted for                    8,650                    8,650                    6,904 Costs Unit costs Materials Conversion   Total WIP, Beginning                    7,550                    5,800                  13,350 Costs incurred in period                 24,300                 28,600                  52,900 Total Costs                 31,850                 34,400                  66,250 Equivalent units                    8,650                    6,904 Costs per Equivalent Units                      3.68                      4.98                      8.66 Cost Assignment Conversion Total Good Units completed & Transferred out (5,690 Units)                 20,951                 28,353                  49,304 Total Cost of goods completed & Transferred out                 20,951                 28,353                  49,304 Work in Process - ending Inventory                 10,899                    6,047                  16,946 Total Cost accounted for                 31,850                 34,400                  66,250 Costs to be accounted for Work in process, Beginning                  13,350 Started into production                  52,900 Total costs                  66,250 Cost Reconciliation Schedule Costs accounted for Transferred out                  49,304 Work in process, Ending Materials                 10,899 Conversion costs                    6,047                  16,946 Total costs                  66,250 FIFO Method Production Cost Report Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning                    2,425 Started into production                    6,225 Total units                    8,650 Units accounted for Goods Units Completed & transferred out: From Beginning WIP                    2,425                           -                      1,043 (0% materials, 43% conversion costs) Started & Completed (5,690 - 2,425)                    3,265                    3,265                    3,265 Normal Spoilage                           -                             -                             -   Abnormal Spoilage                           -                             -                             -   Work in process, Ending                    2,960                    2,960                    1,214 (100% materials, 41% conversion costs) Equivalent units accounted for                    8,650                    6,225                    5,521 Materials Conversion Costs Total Costs incurred in period                 24,300                 28,600                  52,900 Equivalent Units                    6,225                    5,521 Cost per Equivalent Unit                      3.90                      5.18                      9.08 Assignment of Costs: Goods Units and Completed out (5,690 Units) WIP, Beginning - 2,425 Units                    7,550                    5,800                  13,350 Cost added to Beg. WIP in Current period                           -                      5,401                    5,401 Started and completed - 3,265 Units                 12,745                 16,912                  29,658 Total Cost of good units completed & transferred out                 20,295                 28,114                  48,409 WIP, Ending - 2,960 Units                 11,555                    6,286                  17,841 Total Cost accounted For                 31,850                 34,400                  66,250