Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units. The following details relate to production for the month of October 2020, for the Baking Department. Work-in-process, October 1: -0- Transfer from Moulding: 2,000 units valued at $336.40 each  Other manufacturing costs incurred during October: Direct material added Direct Manufacturing Wages Manufacturing Overhead Applied $202,120 $212,840 $306,160 Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion: From Moulding 100% Direct material added 40% Conversion costs 12½% 1,200 pieces were completed and transferred out to the Spraying Department.  Work-in-process at the end of October had reached the following degree of completion: From Moulding 100%  Direct material added 70% Conversion costs 55%  Direct materials added and conversion costs are incurred uniformly throughout the process. Required: (a) Using the attached template prepare a statement of equivalent production to determine the equivalent units for direct materials (From Moulding & Direct Material Added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units. The following details relate to production for the month of October 2020, for the Baking Department.

  1. Work-in-process, October 1: -0-
  2. Transfer from Moulding: 2,000 units valued at $336.40 each
  •  Other manufacturing costs incurred during October: Direct material added Direct Manufacturing Wages Manufacturing Overhead Applied $202,120 $212,840 $306,160
  1. Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each.
  2. At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:

From Moulding 100%

Direct material added 40%

Conversion costs 12½%

  1. 1,200 pieces were completed and transferred out to the Spraying Department.
  •  Work-in-process at the end of October had reached the following degree of completion: From Moulding 100%

 Direct material added 70%

Conversion costs 55%

 Direct materials added and conversion costs are incurred uniformly throughout the process. Required:

(a) Using the attached template prepare a statement of equivalent production to determine the equivalent units for direct materials (From Moulding & Direct Material Added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs. 

a) Statement of Equivalent Units - Baking Department
Units To
Units
Transfer
Direct
Conversion
Costs
Account
Accounted
From
Materials
For
For
Moulding
Added
Beginning WIP
Equivalent Units
Calculating Cost Per Equivalent Unit
Transfer from Moulding
Direct Materials Added
Conversion Costs
Total Cost per Completed Unit
4
I| || || ||
中
Transcribed Image Text:a) Statement of Equivalent Units - Baking Department Units To Units Transfer Direct Conversion Costs Account Accounted From Materials For For Moulding Added Beginning WIP Equivalent Units Calculating Cost Per Equivalent Unit Transfer from Moulding Direct Materials Added Conversion Costs Total Cost per Completed Unit 4 I| || || || 中
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