Can someone please help me with the following problem.
The Paul Manufacturing company uses the process cost system. The following production datais for the month of April, 2002:
Production Costs:
Work in Process, beginning of the month:
Materials $4,350
Labor $3,250
Factory Overhead $1,902
$9,502
Costs incurrred during the month:
Materials $43,200
Labor $32,304
Factory Overhead $19,020
$94,524
Production Report:
In process, beginning of the month 500
Finished and transferred during the month 11,900
Work in Process, end of the month 1,200
Stage of completion 65%
Answer the following questions based on the above
(Hint: Produce a cost of production summary )
I attempted to do this but did this wrong because I didn't know what to do with the in process beginning of month that was given in the production report. This is what mu summary looked like:
The Paul Manufacturing Co.
Cost of Production Summary
For the month ended April 2002
Cost of production for month:
Materials 4350
Labor 3250
Factory overhead 1902
Total cost to be accounted for 9502
Unit output for month:
Finished during month 11900
Equivalent units of work in process,
End of month (1,200-65% completed) 780
Total equivalent production 12680
Unit cost for month:
Materials (4350/12680) .34
Labor (3250/12680) .26
Factory overhead (2000/12680) .16
Total .76
Inventory costs:
Cost of goods finished during month 9044
(11900*.76)
Cost of WIP, end of month:
Materials (1200*.65*.34) 265
Labor (1200*.65*.26) 203
Factory overhead (1200*.65*.16) 125 593
Total production costs accounted for 9637
How many equivalent units does Paul have for the month of April?
What is the cost per equivalent unit for April?
How much cost was transferred to finished goods in April?
How much cost remanined in Work in Process in April?
