In March, Kelly Company had the following unit production costs: materials $12 and conversion costs $8. On March 1, it had zero work in process. During March, Kelly transferred out 23,980 units. As of March 31, 4,600 units that were 30% complete as to conversion costs and 100% complete as to materials were in ending work in process.

(a) Compute the total units to be accounted for.

Total units

(b) Compute the equivalent units of production.

Materials

Conversion costs

The equivalent units of production

(c) Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process.

Question

Theodore Molina

Business

28 August, 12:00

In March, Kelly Company had the following unit production costs: materials $12 and conversion costs $8. On March 1, it had zero work in process. During March, Kelly transferred out 23,980 units. As of March 31, 4,600 units that were 30% complete as to conversion costs and 100% complete as to materials were in ending work in process.

(a) Compute the total units to be accounted for.

Total units

(b) Compute the equivalent units of production.

Materials

Conversion costs

The equivalent units of production

(c) Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process.

+2

Answers (1)

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Rivas · Answer 1

A) the total units to be accounted for = 23,980 + 4,600 = 28,580 units

B) the total material equivalent units = 23,980 finished units + 4,600 = 28,580 units

total conversion equivalent units = 23,980 finished units + (4,600 x 30%) = 23,980 + 1,380 = 25,360

C) cost reconciliation schedule:

Cost accounted to finished goods 23,980 x (12 + 8) = $479,600

Cost of material in process

material work in process 4,600 x 12 = $55,200

conversion cost in process 1,380 x 8 = $11,040

$66,240

total cost $545,840