During Year 3, Anywhere, Inc. (AI) incurred the following product costs. $ 84,000 107,220 69,000 Raw materials Labor Overhead The Year 2 ending balance in the Work in Process (WIP) account was $37,000. Accordingly, this is the beginning WIP balance for Year 3. There were 185 units of product in beginning WIP inventory. Al started 2,000 units of product during Year 3. Ending WIP inventory consisted of 155 units that were 60 percent complete. Required Prepare a cost of production report by filling in the cells that are left blank.
During Year 3, Anywhere, Inc. (AI) incurred the following product costs. $ 84,000 107,220 69,000 Raw materials Labor Overhead The Year 2 ending balance in the Work in Process (WIP) account was $37,000. Accordingly, this is the beginning WIP balance for Year 3. There were 185 units of product in beginning WIP inventory. Al started 2,000 units of product during Year 3. Ending WIP inventory consisted of 155 units that were 60 percent complete. Required Prepare a cost of production report by filling in the cells that are left blank.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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![During Year 3, Anywhere, Inc. (Al) incurred the following product costs.
$ 84,000
107,220
69,000
Raw materials
Labor
Overhead
The Year 2 ending balance in the Work in Process (WIP) account was $37,000. Accordingly, this is the beginning WIP balance for Year
3. There were 185 units of product in beginning WIP inventory. Al started 2,000 units of product during Year 3. Ending WIP inventory
consisted of 155 units that were 60 percent complete.
Required
Prepare a cost of production report by filling in the cells that are left blank.
Equivalent Unit Computations
%
Equivalent
Units
Units
Complete
Beginning inventory
185
Units started
2,000
Total units available for completion
Units in ending inventory
(155)
%
Units complete
2,030
100 %
Total equivalent units
2,123
Cost per Equivalent Unit
Cost per
Cost
Units
Unit
Beginning inventory
$
37,000
Raw materials
Labor
Overhead
69,000
Total product cost
2,123 =
Allocation of Product Cost
Cost transferred to finished goods
Cost in ending inventory
Total product cost
$ 297,220](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73ff972c-ec65-4602-92b9-1155fb1f025c%2Fd0a887a9-d6b3-454a-9ac1-d9a99281163d%2Ft7wv7e_processed.png&w=3840&q=75)
Transcribed Image Text:During Year 3, Anywhere, Inc. (Al) incurred the following product costs.
$ 84,000
107,220
69,000
Raw materials
Labor
Overhead
The Year 2 ending balance in the Work in Process (WIP) account was $37,000. Accordingly, this is the beginning WIP balance for Year
3. There were 185 units of product in beginning WIP inventory. Al started 2,000 units of product during Year 3. Ending WIP inventory
consisted of 155 units that were 60 percent complete.
Required
Prepare a cost of production report by filling in the cells that are left blank.
Equivalent Unit Computations
%
Equivalent
Units
Units
Complete
Beginning inventory
185
Units started
2,000
Total units available for completion
Units in ending inventory
(155)
%
Units complete
2,030
100 %
Total equivalent units
2,123
Cost per Equivalent Unit
Cost per
Cost
Units
Unit
Beginning inventory
$
37,000
Raw materials
Labor
Overhead
69,000
Total product cost
2,123 =
Allocation of Product Cost
Cost transferred to finished goods
Cost in ending inventory
Total product cost
$ 297,220
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