Stevens Company's inventory on March 1 and the costs charged to Work in Process—Department B during March are as follows:Beginning work in process, 12,000 units, 60% completed$ 62,400From Department A, 55,000 units started this period Direct materials added115,500Direct labor incurred384,915Factory overhead incurred138,000 During March, all direct materials were transferred from Department A, the units in process at March 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. Required: Prepare a cost of production report for March. Round cost per equivalent unit to four decimal places and the other answers to the nearest dollar. If your answer is zero, enter “0”. Prepare a cost of production report for March. Round cost per equivalent unit to four decimal places and the other answers to the nearest dollar. If your answer is zero, enter “0”.Stevens CompanyCost of Production Report—Department BFor the Month Ended March 31UNITSWhole UnitsEquivalent UnitsDirect MaterialsConversionUnits charged to production: Inventory in process, March 1 Received from Department A Total units accounted for by Department B Units to be assigned costs: Inventory in process, March 1 (60% completed) Started and completed in March Transferred to finished goods in March Inventory in process, March 31 (70% complete) Total units to be assigned costs COSTSCostsDirect MaterialsConversionTotalCosts per equivalent unit: Total costs for March in Department B Total equivalent units÷ ÷ Cost per equivalent unit Costs charged to production: Inventory in process, March 1 Costs incurred in March Total costs accounted for by Department B Costs allocated to completed and partially completed units: Inventory in process, March 1, balance To complete inventory in process, March 1 Cost of completed March 1 work in process Started and completed in March Transferred to finished goods in March Inventory in process, March 31 Total costs assigned by Department B

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Answered: Stevens Company's inventory on March 1…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stevens Company's inventory on March 1 and the costs charged to Work in Process—Department B during March are as follows:

Beginning work in process, 12,000 units, 60% completed	$ 62,400
From Department A, 55,000 units started this period
Direct materials added	115,500
Direct labor incurred	384,915
Factory overhead incurred	138,000

During March, all direct materials were transferred from Department A, the units in process at March 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.

	Required:
	Prepare a cost of production report for March. Round cost per equivalent unit to four decimal places and the other answers to the nearest dollar. If your answer is zero, enter “0”.

Prepare a cost of production report for March. Round cost per equivalent unit to four decimal places and the other answers to the nearest dollar. If your answer is zero, enter “0”.

Stevens Company
Cost of Production Report—Department B
For the Month Ended March 31
UNITS	Whole Units	Equivalent Units
Direct Materials	Conversion
Units charged to production:
Inventory in process, March 1
Received from Department A
Total units accounted for by Department B
Units to be assigned costs:
Inventory in process, March 1 (60% completed)
Started and completed in March
Transferred to finished goods in March
Inventory in process, March 31 (70% complete)
Total units to be assigned costs


COSTS	Costs
Direct Materials	Conversion	Total
Costs per equivalent unit:
Total costs for March in Department B
Total equivalent units	÷	÷
Cost per equivalent unit
Costs charged to production:
Inventory in process, March 1
Costs incurred in March
Total costs accounted for by Department B
Costs allocated to completed and
partially completed units:
Inventory in process, March 1, balance
To complete inventory in process, March 1
Cost of completed March 1 work in process
Started and completed in March
Transferred to finished goods in March
Inventory in process, March 31
Total costs assigned by Department B

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