Brief Exercise 17-9 Production costs chargeable to the Finishing Department in June in Hollins Company are materials $12,000, labor $29,500, overhead $18,000. Equivalent units of production are materials 20,000 and conversion costs 19,000. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e. g. 2.25.) Cost Reconciliation Cost accounted for Transferred out $ Work in process Materials $ Conversion costs Total cost accounted for $

Question

Evie Lynn

Business

9 March, 05:57

Brief Exercise 17-9 Production costs chargeable to the Finishing Department in June in Hollins Company are materials $12,000, labor $29,500, overhead $18,000. Equivalent units of production are materials 20,000 and conversion costs 19,000. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e. g. 2.25.) Cost Reconciliation Cost accounted for Transferred out $ Work in process Materials $ Conversion costs Total cost accounted for $

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Romeo Anthony · Answer 1

Transferred out 55,800

WIP materials 10,800

WIP conversion cost 45,000

Explanation:

Materials 12,000

Labor 29,500

Overhead 18,000

Equivalent materials 20,000

Conversion 19,000

Materials cost per equivalent unit 12,000/20,000 = 0.6

Conversion cost per equivalent unit (29,500+18,000) / 19,000 = 2.5

Total cost equivalent unit 3.1

Transferred out 55,800 (18,000 x 3.1)

WIP materials 10,800 (18,000 x 0.6)

WIP conversion cost 45,000 (18,000 x 2.5)