Answer:(1)unit to be accounted for $730,000 (2) Equivalent unit of production Direct Materials $750,000, conversion cost $742,800 (3) unit cost for Direct materials $8, unit conversion cost $1.39 Total manufacturing cost $7,838,400 (4)unit accounted for $730,000, cost assigned to unit in ending inventory $12,800,journal entry Dr: work in process plate cutting $7,838,400, Cr: Work in process welding $7,838,400
Explanation:
(1) Physical flow schedule
Unit to be accounted for
Beginning work in process 750,000
---------------
Total unit accounted for. 750,000
Less: Ending inventory. 20,000
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Unit accounted for transfer out. 730,000
(2)
Direct Materials. Conversion cost
Transfer out 730,000. 730,000
WIP(20,000 * 100%) 20,000
(20,000 * 64%) 12,800
-------------- -------------
750,000. 742,800
---------------- --------------------
(3) Unit cost of production
Unit Direct Materials Cost = Total material cost / Equivalent cost
= 6,000,000 / 750,000
= $8
Unit conversion cost = unit conversion cost / Equivalent unit of conversion cost
Unit conversion cost = Direct Labour + Cost of inspection
= 732,000 + 299,200
= 1,031,200 / 742,800
= 1.388
= $1.39
Total manufacturing cost
Direct Materials 6,000,000
Add:Purchases. 800,000
Add:Direct labour. 732,000
-----------------
Prime cost. 7,532,000
Add: Overhead. 299,200
Add: Beginning work in process 20,000
Less: Ending work in process. 12,800
---------------
Total manufacturing cost. 7,838,400
-----------------
(4) Unit accounted for transfer out = $730,000
Cost assigned to unit in ending inventory = $12,800
Journal entry
Dr: work in process plate cutting $7,838,400
Cr: Work in process welding $7,838,400
