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23 January, 20:14

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 6,480 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 $30,052; labor $20,600; overhead $36,536. Prepare a production cost report.

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  1. 23 January, 20:19
    0
    Opening 0

    Started 6480

    Transferred - 3000

    Closing 3480

    We will draw cost table to identify the average cost incurred on complete units and closing cost of closing units.

    Cost Table

    A B C=A+B D E F=D+E G=C/F

    Cost Op. Current Total Cost Complete Closing Equvlnt Cost

    element cost cost units WIP Pro. units P. U

    Material - 30,052 30,052 3,000 3,480 6,480 4.64

    Labour Cost - 20,600 20,600 3,000 696 3,696 5.57

    VOH - 36,536 36,536 3,000 696 3,696 9.89

    20.1

    Cost Account For

    Complete 3,000 20.10 60,290

    Closing Wip

    Material 3,480 4.64 16,139

    Labour 696 5.57 3,879

    VOH 696 9.89 6,880

    26,898

    Total Cost 87,188
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