Problem:
The Welding Department of Thorpe Manufacturing Company has the following production and manufacturing cost data for February 2012. All materials are added at the beginning of the process.
|
Beginning work in process
|
|
|
Beginning work in process
|
15,000 units
|
|
Materials
|
$18,000
|
|
|
1/10 complete
|
|
Conversion costs
|
14,175
|
$ 32,175
|
Units transferred out
|
49,000
|
|
Materials
|
|
180,000
|
Units started
|
45,000
|
|
Labor
|
|
52,380
|
Ending work in process
|
11,000 units
|
|
Overhead
|
|
61,445
|
|
1/5 complete
|
Instructions
Prepare a production cost report for the Welding Department for the month of February.