Molding and packaging | Accounting homework help

P3-2A Rosenthal 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 2014 are presented below.

 

Production Data                               June

 

Beginning work in process units

 

–0–

Units started into production

 

22,000

Ending work in process units

 

2,000

Percent complete—ending inventory

 

40%

 

 

Materials

 

$198,000

Labor

 

53,600

Overhead

 

112,800

Total

 

$364,400

 

 

Cost Data

 

 

 

 

 

 

 

 

(c) Materials

 

 

 

$9.00

 

Instructions

(a)   Prepare a schedule showing physical units of production.

(b)   Determine the equivalent units of production for materials and conversion costs.

CC

$8.00

(c) Compute the unit costs of production.

(d) Transferred

 

(d) Determine the costs to be assigned to the units transferred out and in process for June.

out

$340,000

(e) Prepare a production cost report for the Molding Department for the month of

WIP

$ 24,400

June.

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