The Prescott Materials Company produces screened top-soil by passing unscreened loam through a single process that removes impurities. The completed product is wholesaled, in bulk, to local landscape design companies. Information related to its activities for May follows.
Direct Materials
Direct Materials Used this Period $190,000
Direct Labor
Direct Labor Incurred this Period $ 55,500
Factory Overhead Applied
Overhead Applied this Period
@(200% of Direct Labor) $111,000
Production Department
Beginning Goods in Process Inventory(Units) 5,000
Beginning Goods in Process(Costs)
Direct Materials Used $ 20,000
Direct Labor Incurred 9,600
Overhead Applied(200% of Direct Labor) 19,200
Units Started this Period 20,000
Units Completed & Transferred Out this Period 17,000
Ending Goods in Process Inventory(Units) 8,000
Materials, % Completed 100%
Labor & Overhead, % Completed 20%
Required:
1. Prepare a physical flow reconciliation for May.
2. Compute the Equivalent Units of Production (EUP) in May for Direct Materials, Direct Labor & Factory Overhead.
3. Compute the costs per Equivalent Units of Production (EUP) in May for Direct Materials, Direct Labor & Factory Overhead.
4. Prepare a report of “Costs Accounted For” & “Costs to Account For”.