Question - The Cutting Department of Groneman Manufacturing has the following production and cost data for July.
Production costs
1. Transferred out 9,000 units Beginning wip $0
2. Started with 3000 units that are 60 % Materials 45,000
Complete as to conversion Labor 16,200 costs and 100% complete as Manufacturing 18,900 to materials at July 31 overhead
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.
Instructions -
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
(b) Compute unit costs and prepare a cost reconciliation schedule.