The cutting department of Pharoah Manufacturing has the following production and cost data for July.
Production
Costs
1.
Completed and transferred out 12,500 units.
Beginning work in process
$-0-
2.
2,850 units in ending work in process inventory are 60% complete
Direct materials
42,980
in terms of conversion costs and 100% complete
Direct labour
15,700
in terms of materials at July 31.
Manufacturing overhead
18,404
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly throughout the process.
(a)
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Your answer is correct.
Determine the equivalent units of production for materials and conversion costs.
Direct Materials
Conversion Costs
Total equivalent units
enter a number of units enter a number of units
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Attempts: unlimited
(b)
Calculate unit costs and prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 15.25.)
Unit costs
Direct materials
$enter a dollar amount rounded to 2 decimal places
Conversion costs
$enter a dollar amount rounded to 2 decimal places
Cost Reconciliation Schedule
Costs accounted for
Completed and transferred out
$enter a dollar amount
Work in process inventory, July 31
Direct materials
$enter a dollar amount
Conversion costs
enter a dollar amount enter a subtotal of the two previous amounts
Total costs
