Thang Cleaner Company uses a weighted average process costing system and manufactures a single product—an all purpose liquid cleaner. The manufacturing activity for the month of March has just been completed. A partially completed production cost report for the month of March for the mixing and blending department is shown below.
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THANG CLEANER COMPANY |
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Mixing and Blending Department |
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Production Cost Report |
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For the Month Ended March 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, March 1 |
10,000 |
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Started into production |
100,000 |
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Total units |
110,000 |
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Units accounted for |
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Transferred out |
95,000 |
? |
? |
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Work in process, March 31 |
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(60% materials, 20% |
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conversion costs) |
15,000 |
? |
? |
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Total units |
110,000 |
? |
? |
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COSTS |
Conversion |
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Unit costs |
Materials |
Costs |
Total |
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Costs in March |
$156,000 |
$ 98,000 |
$254,000 |
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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, March 1 |
$ 8,700 |
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Started into production |
245,300 |
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Total costs |
$254,000 |
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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, March 31 |
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Materials |
? |
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Conversion costs |
? |
? |
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Total costs |
? |
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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 above, and compute March unit costs.
(b) Complete the “Cost Reconciliation Schedule” part of the production cost report above.