Luther Processing Company uses a weighted-average process costing system and manufactures a single producta premium rug shampoo and cleaner. The company has just completed the manufacturing activity for the month of October. A partially completed production cost report for the month of October for the mixing department is shown below.

Calculate equivalent units and complete production cost report.

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Equivalent Units

Quantities Physical Units

Materials

Conversion Costs

Units to be accounted for

Work in process, October 1 (all materials, 70% conversion costs) 20,000

Started into production 160,000

Total units 180,000

Units accounted for

Transferred out 130,000 ? ?

Work in process, October 31 (60% materials, 40% conversion costs) 50,000 ? ?

Total units accounted for 180,000 ? ?

Costs Materials

Conversion Costs

Total

Unit costs

Costs in October $240,000

$105,000

$345,000

Equivalent units ?

?

Unit costs $ ? + $ ? = $ ?

Costs to be accounted for

Work in process, October 1

$ 30,000

Started into production

315,000

Total costs

$345,000

Cost Reconciliation Schedule

Costs accounted for

Transferred out

$ ?

Work in process, October 31

Materials

?

Conversion costs

?

?

Total costs

$ ?

Instructions

a. Prepare a schedule that shows how the equivalent units were calculated so that you can complete the Quantities: Units accounted for equivalent units section of the production cost report, and calculate October unit costs.

Materials $1.50

b. Complete the Cost Reconciliation Schedule part of the production cost report above.

Transferred out $286,000Work in process $59,000 (Weygandt, 12/2017, pp. 161-162) Weygandt, J. J., Kimmel, P. D., Kieso, D. E., Aly, I. M. (2017). Managerial Accounting: Tools for Business Decision-Making, Canadian Edition, 5th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119403999 Always check citation for accuracy before use.