Answer and Explanation :
The preparation of the cost section of the production cost report is presented below:
As per the data given in the question,
Crane company
Production cost report
For the month ended March 31
Particulars Materials Conversion Costs Total
Unit Cost:
Total cost $112,000 $262,000 $374,000
Equivalent units 28,000 26,200
(25,000 + 3,000) (25,000 + 3,000 × 40%)
Unit costs $4 $10 $14
Cost to be accounted for
In process, March 1 $0.00
Started into production $374,000
Total cost $374,000 ($374,000 - 3,000 units × $10)
Cost accounted for:
Transferred out:
In process, March 1 $0.00
Started and completed $344,000 (A)
In process, March 31:
Materials $18,000 (3,000 × $10 × 60%)
Conversion cost $12,000 (3,000 × $10 × 40%) $30,000 (B)
Total cost $374,000 ($344,000 + $30,000) (A + B)
