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.