During the month of October the Cost Department gathered and recorded the following production and cost data and other information: Purchases of materials: Materials used for:
Invoice cost $82,600
Invoice cost $82,600
Freight in 1 3,444
Total materials cost $96,044
Production $84,868
Equipment maintenance .... 1 ,940
Factory supplies 8,636
Total cost of materials used $95,444
Equipment maintenance .... 1 ,940
Factory supplies 8,636
Total cost of materials used $95,444
Payroll:
Direct labor $56,760
Supervision 5,800
Indirect labor 6,048
Equipment maintenance. . . ... 1,360
Total payroll $69,968
Other factory overhead:
Heat $ 480
Payroll taxes 2,800
Rent of building 2,400
Power 3,224
Tools 4,000
Heat $ 480
Payroll taxes 2,800
Rent of building 2,400
Power 3,224
Tools 4,000
Equipment depreciation 8,000
Total factory overhead . . . $20,904
Total factory overhead . . . $20,904
Production data for the month of October:
In process October 31 : 168 units, all materials, labor and overhead.
Started: 6,928 units, all materials placed in production.
Spoiled: 128 units, all materials, labor and overhead; these spoiled units have no salvage value. The material and labor cost spent on these spoiled units is added to the factory overhead.
Finished: 6,792 good units.
Inventories are costed by the FIFO method. 20% of the building is occupied by and charged to the Sales Department as heat and rent expense.
Required: (1) Equivalent production figures,
(2) A cost of production report.
(3) The unit cost for the three elements of cost. Carry unit cost computations to two decimal places.
(4) The cost of the work transferred out and the ending work in process inventory.