Reference no: EM131812247

Questions -

Q1. The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $.45 and $.12, respectively. The equivalent units to be assigned costs are as follows.

	Direct Materials	Conversion
Inventory in process, beginning of period	0	3,500
Started and completed during the period	57,000	57,000
Transferred out of Bottling (completed)	57,000	60,500
Inventory in process, end of period	3,500	1,800
Total units to be assigned costs	60,500	62,300

The beginning work in process inventory had a cost of $2,200. Determine the cost of completed and transferred out production, and the ending work in process inventory.

Q2. The inventory at May 1 and the costs charged to Work in Process--Department B during May for Stella Company are as follows:

Beginning WIP, 12,000 units, 60% completed From Department A, 55,000 units started this period	$  62,400
Direct materials added	115,500
Direct labor incurred	384,915
Factory overhead incurred	138,000

During May, all direct materials are transferred from Department A, the units in process at May 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Inventories are costed by the first-in, first-out method.

Prepare a cost of production report for May.