E3-7 Prepare a production report
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost
data for March 2017, the first month of operation.
Production: 7,000 units finished and transferred out; 3,000 units started that are 100% complete as to
materials and 20% complete as to conversion costs.
Manufacturing costs: Materials $33,000; labor $21,000; overhead $36,000.
Instructions
Prepare a production cost report.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, March 1 Value
Started into production Value
Total units ?
Units accounted for
Transferred out Value Value Value
Work in process, March 31 Value Value ?
Total units ? ? ?
Costs
Materials
Conversion
Costs
Total
Unit costs
Total cost(a) ? ? ?
Equivalent units (b) Value Value
Unit costs (a) ÷ (b) ? ? ?
Costs to be accounted for
Work in process, March 1 Value
Started into production Value
Total costs ?
Cost Reconciliation Schedule
Cost accounted for
Transferred out Value
Work in Process, March 31
Materials Value
Conversion costs Value ?
Total costs ?
After you have completed the requirements of E3-7, consider this additional question.
1. Assume that 9,000 units were completed and transferred out. Show the impact of this change
on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule.
Equivalent Units
Quantities
QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month ended March 31, 2017
E3-7 Solution
Materials
Conversion
Costs
Units to be accounted for
Work in process, March 1 0
Costs
Materials
Conversion
Costs
Total
Unit costs
Costs to be accounted for
Work in process, March 1 $0
Cost Reconciliation Schedule
Quantities
QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month ended March 31, 2017
Equivalent Units
E3-7 Solution to additional question
1. Assume that 9,000 units were completed and transferred out. Show the impact of this change
on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule.
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, March 1 0
Started into production 10,000
Total units 10,000
Units accounted for
Costs
Materials
Conversion
Costs
Total
Unit costs
Total cost (a) $33,000 $57,000 $90,000
Cost Reconciliation Schedule
Cost accounted for
Quantities
QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month ended March 31, 2017
Equivalent Units
E3-11 Compute equivalent units, unit costs, and costs assigned
The Polishing Department of Major Company has the following production and manufacturing cost data for September.
Materials are entered at the beginning of the process.
Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to
conversion costs; units started during the period ar 42,900; ending inventory of 5,000 units 10% complete as to
conversion costs.
Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion
costs; material costs added in Polishing during the month, $175,800; labor and overhead applied in Polishing during the
month, $125,680 and $257,140, respectively.
Instructions
(a) Compute the equivalent units of production for materials and conversion costs for the month of September.
(b) Compute the unit costs for materials and conversion costs for the month.
(c ) Determine the costs to be assigned o the units transferred out and in process.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
(a) Compute the equivalent units of production for materials and conversion costs for the month of September.
Physical
Units
Work in process, September 1 Value
Units started into production Value
?
Units transferred out Value
Work in process, September 30 Value
?
Conversion
Materials Costs
Units transferred out Value Value
Work in process, September 30 Value Value
? ?
(b) Compute the unit costs for materials and conversion costs for the month.
Direct Conversion
Materials Costs Total
Work in process, September 1 Value Value ?
Costs added to production
during September Value Value ?
Total costs ? ? ?
(c ) Determine the costs to be assigned to the units transferred out and in process.
Costs accounted for
Transferred out ?
Work in process, September 30
Materials Value
Conversion costs Value ?
Total costs ?
After you have completed the requirements of E3-11, consider this additional question.
1.
Assume that 3,750 units remained in ending work in process and total conversion costs added during September changed to $359,695.
Show the impact of this change on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule.
(Round calculation of cost per equivalent units to 3 decimal points.)
Equivalent Units
E3-11 Solution
(a) Compute the equivalent units of production for materials and conversion costs for the month of September.
Physical
Units
Work in process, September 1 1,600
Conversion
Materials Costs
(b) Compute the unit costs for materials and conversion costs for the month.
Direct Conversion
Materials Costs Total
(c) Determine the costs to be assigned to the units transferred out and in process.
Costs accounted for
Transferred out (39,500 x $15.05) $594,475
Work in process, September 30
Equivalent Units
E3-11 Solution to additional question
1. Assume that 3,750 units remained in ending work in process and total overhead costs applied changed to $359,695.
Show the impact ofthis change on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule.
(Round calculation of cost per equivalent units to 3 decimal points.)
(a) Compute the equivalent units of production for materials and conversion costs for the month of September.
Physical
Units
Work in process, September 1 1,600
Units started into production 42,900
(b) Compute the unit costs for materials and conversion costs for the month. Round to 3 decimal places.
Direct Conversion
Materials Costs Total
Work in process, September 1 $20,000 $43,180 $63,180
Costs added to production
(c ) Determine the costs to be assigned to the units transferred out and in process.
Costs accounted for
CD3 -Excel Tutorial
CURRENT DESIGNS
Building a kayak using the composite method is a very labor-intensive process. In the Fabrication Department, the kayaks go through
several steps as employees carefully place layers of Kevlar® in a mold and then use resin to fuse together the layers. The excess resin is
removed with a vacuum process, and the upper shell and lower shell are removed from the molds and assembled. The seat, hatch, and other
components are added in the Finishing Department.
At the beginning of April, Current Designs had 30 kayaks in process in the Fabrication Department. Rick Thrune, the production manager,
estimated that about 80% of the material costs had been added to these boats, which were about 50% complete with respect to the conversion
costs. The costs of this inventory had been calculated to be $8,400 in materials and $9,000 in conversion costs.
During April, 72 boats were started. At the end of the month, the 35 kayaks in the ending inventory had 20% of the materials and 40% of
the conversion costs added to them.
A review of the accounting records for April showed that materials with a cost of $17,500 had been requisitioned by the Fabrication
Department and that the conversion costs for the month were $39,600.
Instructions
Complete a production report for April 2017 for the Fabrication Department using the weighted-average method.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
Physical
Units Materials
Conversion
Costs
Units to be accounted for
Work in process, April 1 Value
Started into production Value
Total units ?
Units accounted for
Transferred out Value Value Value
Work in process, April 30 Value Value ?
Total units ? ? ?
Costs
Materials
Conversion
Costs
Total
Unit costs
Total cost(a) ? ? ?
Equivalent units (b) Value Value
Unit costs (a) ÷ (b) ? ? ?
Costs to be accounted for
Work in process, April 1 ?
Started into production ?
Total costs ?
Cost Reconciliation Schedule
Cost accounted for
Transferred out ?
Work in Process, April 30
Materials ?
Conversion costs ? ?
Total costs ?
After you have completed the requirements of CD3, consider this additional question.
1. Assume that 25 kayaks remained in ending work in process and conversion costs incurred during the period changed to 42,500.
$60,000. Show the impact of this change on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule.
(Round calculation of cost per equivalent units to 3 decimal points.)
Equivalent Units
Quantities
CURRENT DESIGNS
Fabrication Department
Production Cost Report
For the Month ended April 30, 2017
CD3 – Solution
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, April 1 30
Started into production 72
Total units 102
Units accounted for
Costs
Materials
Conversion
Costs
Total
Costs to be accounted for
Work in process, April 1 $17,400
Started into production 57,100
Quantities
CURRENT DESIGNS
Fabrication Department
Production Cost Report
For the Month ended April 30, 2017
Equivalent Units
CD3 – Solution to additional question
1. Assume that 25 kayaks remained in ending work in process and conversion costs incurred during the period changed to 42,500.
Show the impact of this change on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule.
(Round calculation of cost per equivalent units to 3 decimal points.)
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, April 1 30
Started into production 72
Total units 102
Units accounted for
Costs
Materials
Conversion
Costs
Total
Unit costs
Costs to be accounted for
Cost Reconciliation Schedule
Cost accounted for
Transferred out (77 x $907.808) $69,901
Work in Process, April 30
Quantities
CURRENT DESIGNS
Fabrication Department
Production Cost Report
For the Month ended April 30, 2017
Equivalent Units