A+ Answers

E3-5                                

In Kagan Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2011 are as follows.

 Beginning              Ending            

  Work in Process              Work in Process          

Month  Units    Conversion Cost%  Units    Units    Conversion Cost%            

            Transferred Out                    

January 0  -0-       7,000      2,000     60            

March  0    -0-     12,000      3,000     30            

May  0    -0-     16,000      5,000     80            

July  0    -0-     10,000      1,500     40            

Compute the physical units for January and May. (If answer is zero, please enter 0. Do not leave any fields blank.)                                 

Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.

Cederholm Company has gathered the following information.

Units in beginning work in process

Units started into production

Units in ending work in process

Percent complete in ending work in process:

     Conversion costs

     Materials

Costs incurred:

     Direct materials

     Direct labor

     Overhead

Determine the unit costs of production. (Round answer to 2 decimal places, e.g. 10.50.)

Show the assignment of costs to units transferred out and in process. (Use rounded amount from part (b) for successive calculations.)