Kant Mfg uses process costing for their production. In September, they had the following production data from their first department: Materials Released Into Production: $300,000 Direct Labor Hours: 15,000 Direct Labor Rate: $20.00 Applied Overhead Rate: $2.00/DL Cost Kant uses normal costing and applies overhead based on direct labor cost. Beginning WIP Units Completed Units 150,000 275,000 % Complete 80,000 25% 100% Costs Ending WIP Required: Calculate equivalent units of production for September. Calculate the unit cost for September. Calculate the value of units transferred out of the department for September. Calculate the ending WIP for September. 30% $200,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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Kant Mfg uses process costing for their production. In September, they had the following production data from their first
department:
Materials Released Into Production: $300,000
Direct Labor Hours: 15,000 Direct Labor Rate: $20.00
Applied Overhead Rate: $2.00/DL
Cost Kant uses normal costing and applies overhead based on direct labor cost.
Beginning WIP
Units Completed
Units
150,000
275,000
% Complete
80,000
25%
100%
Costs
Ending WIP
Required: Calculate equivalent units of production for September. Calculate the unit cost for September. Calculate the
value of units transferred out of the department for September. Calculate the ending WIP for September.
30%
$200,000
Transcribed Image Text:Kant Mfg uses process costing for their production. In September, they had the following production data from their first department: Materials Released Into Production: $300,000 Direct Labor Hours: 15,000 Direct Labor Rate: $20.00 Applied Overhead Rate: $2.00/DL Cost Kant uses normal costing and applies overhead based on direct labor cost. Beginning WIP Units Completed Units 150,000 275,000 % Complete 80,000 25% 100% Costs Ending WIP Required: Calculate equivalent units of production for September. Calculate the unit cost for September. Calculate the value of units transferred out of the department for September. Calculate the ending WIP for September. 30% $200,000
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