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Exercise 5 - Cost Reconciliation Report
The Baking Department is one of the processing departments for a German strudel manufacturing facility. In June the cost of the beginning work in process inventory for the Baking Department was $3,570, the cost of the ending work in process inventory was $2,860, and the cost added to production for June was $43,120.
1) Solve for the cost of units completed and transferred out and prepare a cost reconciliation report.
Exercise 6 - Equivalent Units of Production, Cost Per Equivalent Unit of Production, Assigning Costs to Units
Saki Corporation produces laminate flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for August for the first production department follow:
Units
Work in Process Inventory, August 1
5,000 units
Work in Process Inventory, August 31
10,000 units
Percent Completed
Materials
100%
100%
Conversion
40%
30%
Materials cost in WIP Inventory, August 1
$1,500
Conversion cost in WIP Inventory, August 1
$4,000
Units started into production
180,000
Units completed and transferred out to next department
175,000
Materials cost added during August
$54,000
Conversion cost added during August
$352,000
1) Determine the equivalent units of production for materials and conversion
2) Calculate the cost per equivalent unit of production for materials and conversion
3) Assign cost to ending work in process inventory and units completed and transferred out
4) Prepare a cost reconciliation report
