Stevens Company's inventory on March 1 and the costs charged to Work in Process—Department B during March are as follows:

Beginning work in process, 12,000 units, 60% completed $62,400

From Department A, 55,000 units started this period

Direct materials added 115,500

Direct labor incurred 384,915

Factory overhead incurred 138,000

During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Inventories are costed by the first-in, first-out method.

Prepare a cost of production report for March.

If required, round your cost per equivalent unit amounts to four decimal places. Round all other amounts to the nearest dollar. If an amount value is zero enter "0" as answer.

Answer and Explanation:

Stevens Company

Cost of Production Report—Department B

For the Month Ended March 31

UNITS Whole Units Direct MaterialsConversion

Units charged to production:

Inventory in process, March 1 12,000

Received from Department A 55,000

Total units accounted for by Dept. B67,000

Units to be assigned costs:

Inventory in process, March 1 (60% completed) 12,000 0 4,800

Started and completed in March 49,000 49,000 49,000

Transferred to finished goods in March 61,000 49,000 53,800

Inventory in process, March 31 (70% complete) 6,000 6,000 4,200

Total units to be assigned costs 67,000 55,000 58,000

Cost Direct Materials Conversion Total

Total costs for March in Dept. B115,500 522,916

÷Total equivalent units 55,000 58,000

Cost per equivalent unit $2.10 $9.01

Costs charged to production: 62,400

Inventory in process, March 1 638,416

Costs incurred in March 700,816

Total costs accounted for by Department B

Cost allocated to completed and

partially completed units:

Inventory in process, March 1, balance 62,400

To complete inventory in process, March 10 43,27643,276

Started and completed in March102,900441,774544,674

Transferred to finished goods in March 102,900485,050, 587,950

Inventory in process, March 31 12,600 37,866,50,466

Total costs assigned by the Dept. B 115,500 522,916 638,416

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