( e) What is the cost of the May 31 inventory? E3-7
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation.
Production: 7,000 units finished and transferred out; 3,000 units started that arc 100 % complete as to materials and 20 % complete as to conversion costs.
Manufacturing costs: Materials $ 33,000; labor $ 21,000; and overhead $ 36,000.
Instructions Prepare a production cost report. E3-8
The Blending Department of Luongo Company has the following cost and produc-tion data for the month of April.
Costs: Work in process, April 1 Direct materials: 100 % complete $ 100,000 Conversion costs: 20 % complete 70,000 Cost of work in process, April 1 $ 170,000 Costs incurred during production in April Direct materials $ 800,000 Conversion costs 365,000 Costs incurred in April $ 1,165,000
Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100 % complete as to materials and 40 % complete as to conversion costs.
Instructions
( a) Compute the equivalent units of production for( 1) materials and( 2) conversion costs for the month of April.