The Box Company produces various types of water proof corrugated boxes in various shapes, sizes, and materials, which it sells worldwide. The company uses a process cost system to track costs. As the production manager at the Box Company, you are tasked with developing a monthly production cost report for your department (production) in order to track overall production costs. Upon completion of your department’s work, the boxes are sent to the “Printing , Sorting and Finishing” department before they are stored as finished goods. Prepare a Production Cost Report for your department for the month of June 2022:

Production Units:

Beginning units: 20,000 (100% complete as to Direct Materials; 35% complete as to

conversion costs)

60,000 units started into production

70,000 units transferred out

Ending units: 10,000 units (100% complete as to Direct Materials; 30% complete as to

conversion costs)

Production Costs:

Materials:

All materials are available at the beginning of the process.

Beginning WIP material costs: $48,000

Added into production: $120,000

Other:

Beginning WIP conversion costs: $102,800

Direct Labor added: $110,000

MOH added: $50,000

 

Transcribed Image Text:

Department Name:______Production Quantities Units to be accounted for: Work in Process, beginning + Started (transferred) into production = Total Units Units accounted for: Completed and transferred out + Work in Process, ending = Total Units Costs Physical Units Cost Reconciliation Schedule Costs accounted for: 20,000 Production Cost Report 60,000 80,000 70.000 10,000 80,000 a. Total Costs during period b. Equivalent units Unit Costs = a+b Breakdown of Total Costs to be accounted for: Work in Process, beginning + Started into production = Total Costs Period Covered: EQUIVALENT UNITS Direct Materials Direct Materials 48,000 151.800 230,000 381,000 X 70.000 = Units Transferred out: 2.10 Units in Work in Process, Ending Materials (times unit cost of materials): 2.10 x 10,000 = Conversion (times unit cost of conversion): Total Costs 168,000 + 213,800 = 381,800 Conversion Costs* Conversion Costs X June 2022 21,000 Total Total XXXXXXX 147,000 Department Name:______Production Quantities Units to be accounted for: Work in Process, beginning + Started (transferred) into production = Total Units Units accounted for: Completed and transferred out + Work in Process, ending = Total Units Costs Physical Units Cost Reconciliation Schedule Costs accounted for: 20,000 Production Cost Report 60,000 80,000 70.000 10,000 80,000 a. Total Costs during period b. Equivalent units Unit Costs = a+b Breakdown of Total Costs to be accounted for: Work in Process, beginning + Started into production = Total Costs Period Covered: EQUIVALENT UNITS Direct Materials Direct Materials 48,000 151.800 230,000 381,000 X 70.000 = Units Transferred out: 2.10 Units in Work in Process, Ending Materials (times unit cost of materials): 2.10 x 10,000 = Conversion (times unit cost of conversion): Total Costs 168,000 + 213,800 = 381,800 Conversion Costs* Conversion Costs X June 2022 21,000 Total Total XXXXXXX 147,000

Answer rating: 100% (QA)

To prepare the Production Cost Report for the Production Department for the month of June 2022 we need to calculate the equivalent units for direct materials and conversion costs the cost per equivale... View the full answer