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Steiner Corporation 50000

Price: $2.50


Steiner Corporation manufactures water skis through two processes: Molding
and Packaging. In the Molding Department, fiberglass is heated and shaped into the
form of a ski. In the Packaging Department, the skis are placed in cartons and sent to
the finished goods warehouse. Materials are entered at the beginning of both processes.
Labor and manufacturing overhead are incurred uniformly throughout each process.
Production and cost data for the Molding Department for January 2014 are presented
below.


Production Data January
Beginning work in process units  0
Units started into production   50,000
Ending work in process units   2,500
Percent complete - ending inventory  40%
 
Cost Data
Materials   510,000
Labor   92,500
Overhead   150,000
 Total   752,500

Instructions
(a) Compute the 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 out and in process.
(e) Prepare a production cost report for the Molding Department for the month of
January.

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