Question: Meyer Manufacturing Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly
Meyer Manufacturing Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 75% complete and work in process on May 31 was 40% complete.
Instructions
Complete the Production Cost Report for the Molding Department for the month of May using the above information and the information below.
MEYER MANUFACTURING COMPANY
Molding Department
Production Cost Report
For the Month Ended May 31, 2014
Equivalent Units
QUANTITIES Physical Units Materials Conversion Costs
Units to be accounted for
Work in process, May 1 7,000
Started into production 28,000
Total units 35,000
Units accounted for
Transferred out 30,000
Work in process, May 31 5,000
Total units 35,000
COSTS
Unit costs Materials Conversion Costs Total
Costs in May $140,000 $160,000 $300,000
Equivalent units
Unit costs $ $ $
Costs to be accounted for
Work in process, May 1 $ 60,000
Started into production 240,000
Total costs $300,000
Cost Reconciliation Schedule
Costs accounted for
Transferred out $
Work in process, May 31
Materials $
Conversion costs
Total costs $300,000
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