Rosenthal 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 2014 are presented below.
Production Data
June
Beginning work in process units 0
Units started into production 27,500
Ending work in process units 2,500
Percent complete-ending inventory 40 %
Cost Data
Materials $ 247,500
Labor 67,000
Overhead 141,000
Total $ 455,500
Prepare a schedule showing physical units of production.
Physical units
Units to be accounted for
Work in process, June 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, June 30
Total units
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Determine the equivalent units of production for materials and conversion costs.
Materials
Conversion Costs
Total equivalent units
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Compute the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
Total Unit Cost
Unit Costs
$
$
$
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Determine the costs to be assigned to the units transferred and in process for June.
Transferred out
$
Work in process, June 30
$
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Prepare a production cost report for the Molding Department for the month of June.
ROSENTHAL COMPANY
Molding Department
Production Cost Report
For the Month Ended June 30, 2014
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, June 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, June 30
Total units
Costs
Materials
Conversion
Costs
Total
Unit costs
Total Costs
$
$
$
Equivalent units
Unit costs
$
$
$
Costs to be accounted for
Work in process, June 1
$
Started into production
Total costs
$
Cost Reconciliation Schedule
Costs accounted for
Transferred out
$
Work in process, June 30
Materials
$
Conversion costs
Total costs
$