The Cutting Department of Cassel Manufacturing has the following production and cost data for July.
| Production | Costs | |
| 1. Transferred out 12,000 units. | Beginning work in process | $ –0– |
| 2. Started 3,000 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31. | Materials | 45,000 |
|
| Labor | 16,200 |
|
| Manufacturing overhead | 18,300 |
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.
Instructions
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
(b) Compute unit costs and prepare a cost reconciliation schedule.
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