Answer:
Explanation:
The objective of this question is to prepare a production cost report for the month of May for Nitz Company.
Nitz Company
Assembly Department Production Cost Report
For The Month Ended May, 2020
Equivalent Units
Quantities Physical units Materials Conversion costs
Units to be
accounted for 0
Work in process,
May 1
Started into 30000
Production
Total Units 30000
Units Accounted for:
Transferred out 25000 25000 25000
Work in process,
May 31 5000 5000 2000
Total Units
Accounted for 30000 30000 27000
Costs Material Conversion Total
Costs
Unit Costs
Costs in May 90,000 135,000 225,000
Equivalent Units 30000 27000
Unit Costs 3 5 8
Costs to be accounted for:
Work in Process, May 1 -
Started into Production 225,000
Total Costs 225,000
Cost Reconciliation Statement:
Transferred out 200,000
Work in Process, May 31: 0
Materials 15000
Conversion Costs 10,000 25,000
Total Costs 225,000
NOTE:
The process by which we determine the Conversion Costs is by the relation:
Conversion Costs which is = Labor + Overhead
Conversion Costs = 75000 + 60000
Conversion Costs = $135000
And for the Total Costs ; we have:
Total Costs = Material + Conversion Costs
Total Costs = 90000 + 135000
Total Costs = $225000
Work in Process, May 31 = 225,000-225,000 = 0
