Questions -
Q1. The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $.45 and $.12, respectively. The equivalent units to be assigned costs are as follows.
|
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Direct Materials
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Conversion
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|
Inventory in process, beginning of period
|
0
|
3,500
|
|
Started and completed during the period
|
57,000
|
57,000
|
|
Transferred out of Bottling (completed)
|
57,000
|
60,500
|
|
Inventory in process, end of period
|
3,500
|
1,800
|
|
Total units to be assigned costs
|
60,500
|
62,300
|
|
|
|
The beginning work in process inventory had a cost of $2,200. Determine the cost of completed and transferred out production, and the ending work in process inventory.
Q2. The inventory at May 1 and the costs charged to Work in Process--Department B during May for Stella Company are as follows:
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Beginning WIP, 12,000 units, 60% completed From Department A, 55,000 units started this period
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$ 62,400
|
|
Direct materials added
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115,500
|
|
Direct labor incurred
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384,915
|
|
Factory overhead incurred
|
138,000
|
|
|
During May, all direct materials are transferred from Department A, the units in process at May 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Inventories are costed by the first-in, first-out method.
Prepare a cost of production report for May.