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Exercise 16-7
The Sanding Department of Richards Furniture Company has the following production and manufacturing cost data for March 2014, the first month of operation.
Production: 8,010 units finished and transferred out; 4,100 units started that are 100% complete as to materials and 20% complete as to conversion costs.
Manufacturing costs: Materials $42,385; labor $24,270; overhead $31,359.
Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25.)
RICHARDS FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2014
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, March 1
[removed]
Started into production
[removed]
Total units
[removed]
Units accounted for
Transferred out
[removed]
[removed]
[removed]
Work in process, March 31
[removed]
[removed]
[removed]
Total units
[removed]
[removed]
[removed]
Costs
Materials
Conversion
Costs
Total
Unit costs
Total Costs
$
[removed]
$
[removed]
$
[removed]
Equivalent units
[removed]
[removed]
Unit costs
$
[removed]
$
[removed]
$
[removed]
Costs to be accounted for
Work in process, March 1
$
[removed]
Started into production
[removed]
Total costs
$
[removed]
Cost Reconciliation Schedule
Costs accounted for
Transferred out
$
[removed]
Work in process, March 31
Materials
$
[removed]
Conversion costs
[removed]
[removed]
Total costs
$
[removed]
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