
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.
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