# Refer to the information in Problem 18.5A. Work in Process Inventory, August 1: 20,000 units Direct materials:

## Question:

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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