Question: Refer to the information in Problem 18 5A Work in Process

Refer to the information in Problem 18.5A.
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete . . . . . . . . . . . . . . . . . . . . . . . $ 80,000
Conversion: 20% complete . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000
Balance in work in process, August 1 . . . . . . . . . . . . . . . . . . . . $104,000
Units started during August . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Units completed and transferred in August . . . . . . . . . . . . . . . 60,000
Work in process (70% complete), August 31 . . . . . . . . . . . . . . ?
Costs charged to Work in Process in August
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000
Conversion costs:
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... $120,000
Overhead applied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,000
Total conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... $252,000

Instructions
a. Complete a production cost report for the Badgersize Company Forming Department for the month of August.
b. Discuss how management might use the production cost report to help manage costs.



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  • CreatedApril 17, 2014
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