Problem 54

a. Phunky Phingers
Cost of Production Report
For the Month of November 2019

Production Data:
Units
Beginning WIP inventory 12,000
Units started 90,000
Units to account for 102,000

Units Material Labor OH

Beginning WIP inventory 12,000 12,000 12,000
12,000
Started & completed 70,000 70,000 70,000 70,000
Ending WIP inventory 20,000 20,000 8,000
16,000
Units accounted for 102,000 102,000 90,000 98,000

Cost Data:
Total Material Labor OH
Beginning WIP inventory $ 19,564 $ 13,020 $ 1,908 $
4,636
Current costs 206,616 90,000 45,792 70,824
Cost to account for $226,180 $103,020 $47,700 $75,460
Divided by EUP ÷ 102,000 ÷ 90,000÷98,000
Cost per EUP $2.31 $1.01 $0.53 $0.77

Cost Assignment:
Transferred out (82,000 × $2.31) $189,420
Ending inventory:
Material (20,000 × $1.01) $20,200
Direct labor (8,000 × $0.53) 4,240
Overhead (16,000 × $0.77) 12,320 36,760
Total cost accounted for $226,180
b. Phunky Phingers
Cost of Production Report
For the Month of November 2019

Production Data:
Units
Beginning WIP inventory 12,000
Units started 90,000
Units to account for 102,000

Units Material Labor Overhead

Beginning WIP inventory 12,000 0 8,400 4,800
Started & completed 70,000 70,000 70,000 70,000
Ending WIP inventory 20,000 20,000 8,000
16,000
Units accounted for 102,000 90,000 86,400 90,800

Cost Data:
Total Material Labor Overhead
Beginning WIP inventory $ 19,564
Current costs 206,616 $90,000 $45,792 $70,824
Cost to account for $226,180
Divided by EUP ÷ 90,000 ÷ 86,400÷ 90,800
Cost per EUP $2.31 $1.00 $0.53 $0.78

Cost Assignment:
Transferred out:
Beginning WIP inventory $ 19,564
Complete beginning WIP
DL (8,400 × $0.53) 4,452
OH (4,800 × $0.78) 3,744 $ 27,760
Started & completed (70,000 × $2.31) 161,700
Ending WIP inventory:
Material (20,000 × $1.00) $20,000
Direct labor (8,000 × $0.53) 4,240
Overhead (16,000 × $0.78) 12,480 36,720
Total cost accounted for $226,180