Romero CompanyPerth Division is a new state-of-the-art production facility that manufactures landing gears for airplanes. The September

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Question:

Romero Company—Perth Division is a new state-of-the-art production facility that manufactures landing gears for airplanes. The September 30 ending work-in-process inventory is comprised of labor and overhead and is approximately 60% complete as to conversion costs. All materials are assumed to be 100% complete. Total materials costs during the period totaled $840,000.

Instructions
As the new plant accountant, you are asked to complete the production cost report which appears as follows:

ROMERO COMPANY—Perth Division Assimilation Department Production Cost Report For the Month Ended September 30, 2022

Equivalent Units

QUANTITIES Physical Units Materials Conversion Costs
Units to be accounted for
Work in process inventory, 9/1 300
Started into production 1,100
Total units to be accounted for 1,400

Units accounted for
Completed and transferred out 900 900 900
Work in process inventory, 9/30 500 500
Total units accounted for 1,400 1,400

COSTS
Unit Costs Materials Conversion Costs Total
Costs in September $840,000 $ $1,104,000
Equivalent units of production
Unit costs $ $ 220 $

Costs to be accounted for
Work in process inventory, 9/1 $ 243,400
Started into production
Total costs to be accounted for $

Cost Reconciliation Schedule
Costs accounted for
Completed and transferred out $
Work in process inventory, 9/30
Materials $
Conversion costs 66,000
Total costs accounted for $1,104,000