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Problem
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the begin¬ning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2017 are presented below.
Production Data
June
Beginning work in process units
-0-
Units started into production
22,000
Ending work in process units
2,000
Percent complete-ending inventory
40%
Cost Data
Materials
$198,000
Labor
53,600
Overhead
112,800
Total
$364,400
Instructions
(a) Prepare a schedule showing physical units of production.(b) Determine the equivalent units of production for materials and conversion costs.(c) Compute the unit costs of production.(d) Determine the costs to be assigned to the units transferred out and in process for June.(e) Prepare a production cost report for the Molding Department for the month of June.
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