Kasten Company manufactures bowling balls through two processes: moulding and packaging. In the moulding department, urethane, rubber, plastic, and other materials are moulded into bowling balls. In the packaging department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process
Labour and manufacturing overhead are incurred uniformly throughout each process.
Production and cost data for the moulding department during June 2016 are presented below:
Production Data _____________________________ June
Beginning work in process units ........................... 0
Units started into production ............................... 22,000
Ending work in process units ............................... 2,000
Percent complete-ending inventory ...................... 40%
Cost Data_________________________
Materials ...................................................$198,000
Labour ...................................................... 53,600
Overhead ................................................... 112,800
Total ....................................................... $364,400
Instructions
(a) Prepare a schedule showing physical units of production.
(b) Determine the equivalent units of production for materials and conversion costs.
(c) Calculate the unit costs of production.
(d) Determine the costs to be assigned to the units transferred and in process for June.
(e) Prepare a production cost report for the moulding department for the month of June.