Problem 3-1A (P3-1A) Kasten Company manufactures bowling balls through two processes: Molding and Packaging

Problem 3-1A (P3-1A) Kasten Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2008 are presented below.

Production Data June
Beginning work in process units –0–
Units started into production 20,000
Ending work in process units 2,000
Percent complete—ending inventory 60%
Cost Data
Materials $198,000
Labor 50,400
Overhead 112,800
Total $361,200

Hint:
Complete four steps necessary to prepare a production cost report.

Instructions
(a) Prepare a schedule showing physical units of production.
(b) Determine the equivalent units of production for materials and conversion costs.
(c) Compute the unit costs of production.
(d) Determine the costs to be assigned to the units transferred and in process for June.
(e) Prepare a production cost report for the Molding Department for the month of June.

Check:
(c) Materials $9.90; CC $8.50
(d) Transferred out $331,200; WIP $30,000
 

Click here for the solution: Problem 3-1A (P3-1A) Kasten Company manufactures bowling balls through two processes: Molding and Packaging

3-43 (Process costing equivalent units, product cost) The information below pertains to October production at Zippy Company's bottling plant, which produces and bottles sports drinks

3-43 (Process costing equivalent units, product cost) The information below pertains to October production at Zippy Company's bottling plant, which produces and bottles sports drinks. Each unit consists of a case of 12 bottles.
Units Materials Conversion
Work in progress Oct 1 2,000 70% complete 60% complete
Started in October 10,000
To Account for 12,000
Completed and transferred out 8,000 100% complete 100% complete
Work in progress Oct 30 4,000 40% compete 25% complete
Accounted for 12,000
Costs beg of Oct $1,050 $3,240
Added during Oct 8,200 22,620
To be accounted for $9,250 $25,860
* a) Using the weighted-average method, determine the number of equivalent units of production for materials and conversion during October.
* b) Determine the cost per equivalent unit for materials and conversion for October and the total cost per equivalent unit.
* c) Determine whether the cost per equivalent unit for materials and conversion increased or decreased from the previous month.

Also compute the cost of goods completed and Transferred out and cost of WIP ending inventory.

Click here for the solution: 3-43 (Process costing equivalent units, product cost) The information below pertains to October production at Zippy Company's bottling plant, which produces and bottles sports drinks