Kasten Company manufactures bowling balls through two processes: Molding and

Price: $3.99


P21-1A Kasten 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 2010 are presented below.

Production Data			June
Beginning work in process units			0
Units started into production			20,000
Ending work in process units			2,000
Percent complete - ending inventory			60%

Cost Data
Materials			198,000
Labor			50,400
Overhead			112,800
Total			364,400

Instructions
(a) Prepare a schedule showing physical units of production.
(b) Determine the equivalent units of production for materials and conversion costs.
(c) Compute the unit costs of production.
(d) Determine the costs to be assigned to the units transferred and in process for June.
(e) Prepare a production cost report for the Molding Department for the month of June.