Martine Processing Company uses a weighted average process costing system and manufactures a single product—a premium rug shampoo and cleaner. 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 shown below.
Instructions
(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.
(b) Complete the “Cost Reconciliation Schedule” part of the production cost report below.
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MARTINE PROCESSING COMPANY |
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Mixing and Cooking Department |
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Production Cost Report |
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For the Month Ended October 31 |
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Equivalent Units |
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Physical |
Conversion |
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QUANTITIES |
Units |
Materials |
Costs |
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Units to be accounted for |
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Work in process, October 1 |
20,000 |
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Started into production |
160,000 |
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Total units |
180,000 |
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Units accounted for |
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Transferred out |
130,000 |
? |
? |
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Work in process, October 31 |
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(60% materials, 40% |
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conversion costs) |
50,000 |
? |
? |
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Total units |
180,000 |
? |
? |
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COSTS |
Conversion |
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Materials |
Costs |
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Unit costs |
$240,000 |
$105,000 |
$345,000 |
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Costs in October |
? |
? |
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Equivalent units |
$ ? |
+ $ ? |
= $ ? |
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Unit costs |
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Costs to be accounted for |
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Work in process, October 1 |
$ 30,000 |
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Started into production |
315,000 |
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Total costs |
$345,000 |
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COST RECONCILIATION SCHEDULE |
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Costs accounted for |
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Transferred out |
$ ? |
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Work in process, October 31 |
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Materials |
? |
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Conversion costs |
? |
? |
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Total costs |
? |
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