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SOLUTIONS TO PROBLEMS—SET C
PROBLEM 21-1C
(a)
Physical units
Units to be accounted for
Work in process, January 1
Started into production
Total units
0
50,000
50,000
(b)
Equivalent units
Materials
Conversion Costs
Units transferred out
Work in process, January 31
40,000
40,000
(c)
Unit Costs
Materials
$11.10 ($555,000 ÷ 50,000)
(d) Costs accounted for
Transferred out (40,000 X $16.35) ................. $654,000
PROBLEM 21-1C (Continued)
(e) COMPLETE CORPORATION
Molding Department
Production Cost Report
For the Month Ended January 31, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Units to be accounted for
Work in process, January 1
Units accounted for
Transferred out
0
40,000
40,000
40,000
Costs
Materials
Conversion
Costs
Total
Unit costs (Step 3)
Costs in January
Costs to be accounted for
(a)
$555,000
$231,000
$786,000
Cost Reconciliation Schedule (Step 4)
Costs accounted for
Transferred out (40,000 X $16.35)
$654,000
PROBLEM 21-2C
(a) (1) Physical units
R12
Refrigerators
F24
Freezers
Units to be accounted for
Work in process, June 1
0
0
(2) Equivalent units
R12 Refrigerators
Materials
Conversion
Costs
Units transferred out
14,000
14,000
F24 Freezers
Materials
Conversion
Costs
Units transferred out
Work in process, June 30
18,000
18,000
PROBLEM 21-2C (Continued)
(3) Unit costs
R12
Refrigerators
F24
Freezers
Materials ($836,000 ÷ 22,000)
($720,000 ÷ 20,000)
$38
$36
(4) R12 Refrigerators
Costs accounted for
Transferred out (14,000 X $72) .............. $1,008,000
F24 Freezers
Costs accounted for
Transferred out (18,000 X $63) .............. $1,134,000
PROBLEM 21-2C (Continued)
(b) SUNNYLAND CORPORATION
Stamping Department—Plant A
Production Cost Report
For the Month Ended June 30, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Units to be accounted for
Units accounted for
Transferred out
14,000
14,000
14,000
Costs
Materials
Conversion
Costs
Total
Unit costs (Step 3)
Costs in June
(a)
$836,000
$693,600
$1,529,600
Cost Reconciliation Schedule (Step 4)
Costs accounted for
PROBLEM 21-3C
1. Raw Materials Inventory ............................................ 28,000
Accounts Payable ............................................... 28,000
4. Work in Process—Blending ...................................... 13,230
Work in Process—Packaging .................................... 10,540
Factory Labor ...................................................... 23,770
5. Manufacturing Overhead ........................................... 41,500
Accounts Payable ............................................... 41,500
8. Finished Goods Inventory ......................................... 72,000
Work in Process—Packaging ............................ 72,000
PROBLEM 21-4C
(a)
Equivalent Units
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, October 1
Started into production
Total units
30,000
375,000
405,000
Materials cost
Beginning work in
process
$ 53,500
Conversion costs
Beginning work in
process
$ 33,100
(b)
Costs accounted for
Transferred out (365,000 X $3.80)
Work in process, October 31
$1,387,000
PROBLEM 21-4C (Continued)
(c) SIENNA COMPANY
Assembly Department
Production Cost Report
For the Month Ended October 31, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Units to be accounted for
Work in process, October 1
30,000
Costs
Materials
Conversion
Costs
Total
Unit costs (Step 3)
Costs in October
Equivalent units
Unit costs (a) ÷ (b)
(a)
(b)
$1,093,500
405,000
$2.70
$419,100
381,000
$1.10
$1,512,600
$3.80
Cost Reconciliation Schedule (Step 4)
Costs accounted for
Transferred out (365,000 X $3.80)
$1,387,000
PROBLEM 21-5C
(a)
(1)
Equivalent Units
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, May 1
2,000
(2)
Materials cost
Conversion costs
Beginning work in
process
Added during month
$18,000
90,000
Beginning work in
process
Added during month
$22,000
110,300
($46,000 + $64,300)
(3)
Costs accounted for
Transferred out (2,700 X $66)
Work in process, May 31
$178,200
PROBLEM 21-5C (Continued)
(b) MAUEVE COMPANY
Bicycle Department
Production Cost Report
For the Month Ended May 31, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Units to be accounted for
Units accounted for
Transferred out
2,700
2,700
2,700
Costs
Materials
Conversion
Costs
Total
Unit costs (Step 3)
Costs in May
Costs to be accounted for
(a)
$108,000
$132,300
$240,300
Cost Reconciliation Schedule (Step 4)
Costs accounted for
Transferred out (2,700 X $66)
178,200
PROBLEM 21-6C
(a) Computation of equivalent units:
Equivalent Units
Physical
Units
Materials
Conversion
Costs
Units accounted for
Transferred out
100,000
100,000
100,000
Computation of March unit costs
Materials: $212,800 ÷ 112,000 equivalent units = $1.90
(b) Cost Reconciliation Schedule
Costs accounted for
Transferred out (100,000 X $2.95) ................ $295,000
Work in process, March 31
*PROBLEM 21-7C
(a) Standard Bicycles
(1) Equivalent units—Materials
Physical
Units
Materials
Added
This Period
Equivalent
Units
Work in process, May 1
400
* 0%*
0
Equivalent units—Conversion
Physical
Units
Conversion
Added
This Period
Equivalent
Units
Work in process, May 1
400
30% (1 – .7) 120
(2) Unit costs
Materials
Conversion
Costs in May (a)
$57,600
**$73,980**
*PROBLEM 21-7C (Continued)
(3) Assignment of costs to units transferred out and in process
Costs to Be
Assigned
Assignment of Costs
Equivalent
Units
Unit
Cost
Total Costs
Assigned
Total mfg. costs
Transferred out
***$148,980***
Work in process, May 1
Conversion
120
$ 54
$17,400
6,480
Premium Bicycles
(1) Equivalent units—Materials
Physical
Units
Materials
Added
This Period
Equivalent
Units
Work in process, May 1
100
* 0%*
0
Started and completed
700 (900 – 200)
100%
700
Equivalent units—Conversion
Physical
Units
Conversion
Added
This Period
Equivalent
Units
Work in process, May 1
100
25% (1 – .75) 25
*PROBLEM 21-7C (Continued)
(2) Unit costs
Materials
Conversion
Costs in May (a)
Equivalent units (b)
$63,000
900
**$76,475**
805
(3) Assignment of costs to units transferred out and in process
Costs to Be
Assigned
Assignment of Costs
Equivalent
Units
Unit
Cost
Total Costs
Assigned
Total mfg. costs
Transferred out
***$147,475***
Work in process, May 1
Conversion
25
$ 95
$ 8,000
2,375
*PROBLEM 21-7C (Continued)
(b) BRACK COMPANY
Production Cost Report—Standard Bicycles
For the Month Ended May 31
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Units to be accounted for
Work in process, May 1
Units accounted for
Completed and transferred out
Work in process, May 1
Started and completed
400
400
1,100
0
1,100
120
1,100
Costs
Materials
Conversion
Costs
Unit costs (Step 3)
Costs in March (a)
Costs to be accounted for
Work in process, May 1
Cost Reconciliation Schedule (Step 4)
Costs accounted for
Transferred out
Work in process, May 1
$57,600
$17,400
$ 73,980
$ 17,400
