The cutting department of Groneman Manufacturing has the following production and cost data for July.
Production
1. Transferred out 12,000 units.
2. Started 3,000 units that are 60% complete in terms of conversion costs and 100% complete in terms of materials at July 31.
__________________________________________ Costs
Beginning work in process ......................... $ 0
Materials .............................................. 45,000
Labour ................................................ 16,200
Manufacturing overhead ........................... 18,300
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.
Instructions
(a) Determine the equivalent units of production for
(1) Materials
(2) Conversion costs.
(b) Calculate unit costs and prepare a cost reconciliation schedule.