To determine Prepare the production cost report for the Engine Department of Company M for May. Explanation Process Costing : It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced. Prepare the production cost report for the Engine Department of Company M for May. Calculate the physical flow of goods: Particulars Total Units Inputs: Beginning work in process 0 Manufacturing of lawnmowers during the month May 6,000 Lawnmowers to account for during the month May 6,000 Outputs: Units completed 6,000 Ending work in process 0 Lawnmowers accounted for during the month May 6,000 (Table 1) Calculate the equivalent units: Particulars Total units Direct Materials Conversion Based on monthly input: Beginning WIP 0 0 Units started 6,000 6,000 Equivalent units of input 6,000 6,000 Based on monthly output: Units completed 6,000 6,000 Ending WIP 0 0 Equivalent units of output 6,000 6,000 (Table 2) Calculate the cost per equivalent unit: Particulars Total Unit Cost Direct Materials Conversion Costs Costs from Deck Department $180,000 $120,000 Costs from Engine Department 540,000 120,000 Total (A) $720,000 $240,000 Divide by equivalent units (B) 6,000 6,000 Costs per equivalent unit (A÷B) $160 $ 120 $ 40 (Table 3) Calculate the total cost assignment:

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Ch. 18 - Prob. 1STQ Ch. 18 - 2. Which of the following businesses would most...Ch. 18 - 3. Nut House manufactures and sells jars of peanut...Ch. 18 - 4. Indicate which of the following phrases...Ch. 18 - 5. A production cost report contains which of the...Ch. 18 - 1. Why would a company use multiple cost...Ch. 18 - 2. What factors should be taken into account in...Ch. 18 - 3. Rodeo Drive Jewelers makes custom jewelry for...Ch. 18 - 4. Describe at least two products or production...Ch. 18 - 5. What are the four significant parts of the...

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