Question: Process Cost Problem The inventory at May 1 and the costs charged to Work in Process--Department B during May for Star Company are as follows: 1,000 units, 75% completed $ 13,100 From Department A, 7,000 units 58,800 Direct labor 30,000 Factory overhead 18,280 During May, 1,000 units in process on May 1 were completed, and of the 7,000 units entering the department, all were completed except 600 units which were 25% completed. Charges to Work-in-ProcessDepartment B for June are as follows: From Department A, 7,800 units $69,420 Direct labor 36,000 Factory overhead 21,470 During June, the units in process at the beginning of the month were completed, and of the 7,800 units entering the department, all were completed except 200 units which were 80% completed. Instructions 1. Enter the balance as of May 1 in a four-column account for Work in ProcessDepartment B. Record the debits and the credits in the account for May. Construct a cost of production report, and present computations for determining (a) equivalent units of production for materials and conversion, (b) equivalent costs per unit, (c) cost of goods finished, differentiating between units started in the prior period and units started and finished in May, and (d) work in process inventory. 2. Provide the same information for June by recording the June transactions in the four-column work in process account. Construct a cost of production report, and present the June computations (a through d) listed in (1). CHECK FIGURES: May Direct Material Equivalent Units: 7,000 units May Conversion Equivalent Units: 6,800 units

Process Cost Problem B during The inventory at May 1 and the costs charged to Work in Process-Department May for Star Company are as follows: 13.100 1,000 units, 75% completed 58,800 From Department A, 7,000 units Direct labor 30 000 Factory overhead 18,280 During May, 1000 units in process on May 1 were completed and of the 7,000 units entering the department, all were completed except 600 units which were 25% completed Charges to Work-in-process- Department B for June are as follows: From Department 7,800 units S69,420 Direct labor 36.000 Factory overhead 21,470 During June, the units in process at the beginning of the month were completed, and of the 7,800 units entering the department, all were completed except 200 units which were 80% completed. 1. Enter the balance as of May 1 in a account for Work in Process Department B. Record the debits and the credits the account for May Construct a of of report, and present computations for de termining units of production for materials and (a) equivalent goods started and finished between (b) equivalent costs per unit, (c) cost in May, and units started in the prior period and units (d) work in process in Provide the same information for June by column work June computations account. Construct the ons in the four CHECK FIGURES: (a through d) a cost of production report, and present listed in May Direct Material Equivalent Units: 7,000 units May Units: 6,800 units