Reference no: EM13343098

Comprehensive Problem, One Department [LO 3, 4] Regal Polish manufactures a single product in one department and uses a process costing system. At the start of May, there were 10,100 units in process that were 100 percent complete with respect to direct material and 60 percent complete with respect to conversion costs (labor and overhead). During the month, the company began production of 108,600 units. Ending Work in Process Inventory consisted of 5,600 units that were 100 percent complete with respect to material and 70 percent complete with respect to conversion costs. Cost Information Beginning Work in Process Costs Added in May Direct material $4,160   $80,117   Direct labor 290   11,412   Manufacturing overhead 400   14,813   Total $4,850   $106,342

Calculation of Equivalent Units [LO 2]

McMillian Tire Company produces tires used on small trailers. The month of June ended with 700 tires in process, 90 percent complete as to direct materials, and 50 percent complete as to conversion costs; 4,800 tires were transferred to finished goods during the month, and 3,000 were started during the month. The beginning Work in Process inventory was 60 percent complete as to direct materials and 40 percent complete as to conversion costs.

Determine the denominators to be used in the calculations of cost per equivalent unit for materials and conversion costs.

Production Cost Report, Missing Information [LO 2,3,4,5]

Marion Chemicals produces a chemical used as a base in paints. In the manufacturing process, all materials are added at the start of the process, whereas labor and overhead are added evenly throughout production.

Fill in the missing information in Marion's Production Cost Report for the month of December.

Production Cost Report [LO 2, 3, 4, 5]

Aussie Yarn Co. is a U.S. producer of woolen yarn made from wool imported from Australia. Raw wool is processed, spun, and finished before being shipped out to knitting and weaving companies. Material is added in the beginning of processing, and conversion costs are added evenly throughout processing.

Aussie began the month of August with 6,400 units in process that were 100 percent complete as to materials and 70 percent complete as to labor and overhead. It started 29,400 units into production during the month of August of which 5,400 remained in ending Work in Process inventory and were 50 percent complete as to conversion costs. The cost data are as follows:

Prepare a production cost report for the month of August.