International Electronics placed in to production 10,000 microchips during February but only 9,000 microchips are fully completed at the end of the month. All direct materials have been added to the remaining 1,000 microchips. However on average, these remaining 1,000 microchips are only 50% complete as to conversion costs. The total assembly costs during February were

Direct materials used	Br 720,000
Conversion costs	684,000
Total manufacturing costs	1,404,000

 

 

 

 

				Equivalent Units
		Physical		Direct	Conversion
Flow of Production		Units		Materials	Costs
Work in process, beginning		0
Started during current period		10,000
To account for		10,000
Completed and transferred out During current period		9,000		9,000	9,000
Work in process, ending				1,000	500(0.5X1,000)
Accounted for				____	_____
Work done in current period only				10,000	9,500

  Required: Prepare a cost of production report.

Answer rating: 100% (QA)

Solution International Electronics Cost of Production Report For the month of Feb... View the full answer