The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,240 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 $36,960; labor $21,400; overhead $30,242. Prepare a production cost report. (Round unit costs to 2 decimal places, e. g. 2.25 and other answers to 0 decimal places, e. g. 125.)

Cost of goods transferred out $71,061.012

Value of closing inventory = $17,540.98

Explanation:

Cost per equivalent unit = Cost / total equivalent unit

Material

Equivalent unit = (100%*6,240) + (100% * 3,000) = 9240

Cost per equivalent unit = $36,960/9,240 units = 4

Labour

Equivalent unit = (100%*6,240) + (25% * 3,000) = 6990 units

Cost per equivalent unit = (21,400 + 30,242) / 6990 = 7.387982833

Cost of goods transferred out = (6,240 * 4) + (7.38*6,240) = 71,061.012

Value of closing inventory = (3,000 * 4) + (7.38 * 25%*3000) = 17,540.98

Cost of goods transferred out $71,061.012

Value of closing inventory = $17,540.98