P3-6B Venuchi Cleaner Company uses a weighted-average process cost system and manu- factures a single product—an all-purpose liquid cleaner. The manufacturing activity for the month of March has just been completed. A partially completed production cost report for the month of March for the mixing and blending department is shown  below.

Venuchi Cleaner Company Mixing and Blending Department Production Cost Report

For the Month Ended March 31

Equivalent Units

 

Compute equivalent units and complete production cost report.

(LO 5, 7), AP

 

Quantities	Physical Units		Materials		Conversion Costs
Units to be accounted for Work in process, March 1	10,000
Started into production	76,000
Total units	86,000
Units accounted for Transferred out	66,000		?		?
Work in process, March 31 (60% materials, 20% conversion costs)	20,000		?		?
Total units	86,000		?		?

 

                                                                                                                 

Costs                                                                                 Conversion

Unit costs                                                                       Materials            Costs              Total

Total cost	$156,000			$98,000			$254,000
Equivalent units	?			?
Unit costs	$     ?	1		$   ?		5	$     ?

 

                                                                  

Costs to be accounted for

 

Work in process, March 1	$    8,700
Started into production	245,300
Total costs	$254,000

 

 

 

 

Cost Reconciliation Schedule

Costs accounted for

 

Conversion

Materials               Costs                  Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transferred out                                                                                                                    $     ?

Work in process, March 31

Materials                                                                                                       ?

Conversion costs                                                                                  $   ?                           ?

                            

Total costs                                                                                                                   $     ?

 

(a)  Materials $2.00   (b)  Transferred out $224,400 WIP $ 29,600

Instructions

(a)  Prepare a schedule that shows how the equivalent units were computed so that you can complete the “Quantities: Units accounted for” equivalent units section shown in the production cost report above, and compute March unit costs.

(b)  Complete the “Cost Reconciliation Schedule” part of the production cost report above.