Bicnell Corporation manufactures water skis through two processes: moulding and packaging. In the moulding department, fibreglass is heated and shaped into the form of a ski. In the packaging department, the skis are placed in cartons and sent to the finished goods warehouse. Materials are entered at the beginning of both processes. Labour and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the moulding department for January 2016 are presented below:

Instructions
(a) Calculate the 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 out and in process.
(e) Prepare a production cost report for the moulding department for the month of January.

Transcribed Image Text:

Production Data Beginning work in process units Units started into production Ending work in process units Percent complete-ending inventory Cost Data Materials Labour Overhead Total January 42,500 2,500 40% $510,000 96,000 150,000 $756,000