Question

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

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.

If required, round your cost per equivalent unit amounts to four decimal places. Round all other amounts to the nearest dollar. If an amount value is zero enter “0” as answer.

Inventory in process, May 1

 

Received from Department A

 

Total units accounted for by Dept. B

 

Equivalent Units

Whole Units

Direct Materials

Conversion

Inventory in process, May 1 (60% completed)

 

 

 

Started and completed in May

 

 

 

Transferred to finished goods in May

 

 

 

Inventory in process, May 31 (70% complete)

 

 

 

Total units to be assigned costs

 

 

 

Direct Materials

Conversion

Total costs for May in Dept. B

Total equivalent units

 

 

Cost per equivalent unit

Direct Materials Costs

Conversion Costs

Total Costs

Inventory in process, May 1

Costs incurred in May

 

Total costs accounted for by Department B

Costs allocated to completed and partially completed units:

Inventory in process, May 1, bal

To complete inventory in process, May 1

 

Started and completed in May

 

 

 

Transferred to finished goods in May

 

Inventory in process, May 31

 

 

 

Total costs assigned by Dept. B

 

 

Unit Information

Units charged to production:

Inventory in process, May 1

 

Received from Department A

 

Total units accounted for by Dept. B

 

 

Units to be assigned cost:

 

 

Equivalent Units

 

Whole Units

Direct Materials

Conversion

Inventory in process, May 1 (60% completed)

 

 

 

Started and completed in May

 

 

 

Transferred to finished goods in May

 

 

 

Inventory in process, May 31 (70% complete)

 

 

 

Total units to be assigned costs

 

 

 

       

Cost Information

Units costs:

 

Direct Materials

Conversion

Total costs for May in Dept. B

Total equivalent units

 

 

Cost per equivalent unit

 

Costs charged to production:

 

Direct Materials Costs

Conversion Costs

Total Costs

Inventory in process, May 1

 

 

Costs incurred in May

 

 

 

Total costs accounted for by Department B

 

 

Costs allocated to completed and partially completed units:

 

 

 

Inventory in process, May 1, bal

 

 

To complete inventory in process, May 1

 

Started and completed in May

 

 

 

Transferred to finished goods in May

 

 

 

Inventory in process, May 31

 

 

 

Total costs assigned by Dept. B