Cost of Production Report: No Beginning Inventories Port Townsend Paper (PTPC) produces paper by blending recycled corrugated cardboard with other fibers. Assume the following represent production and cost data for October. There was no inventory on hand on October 1. Units of product started in process during October 20,000 tons Units completed and transferred to finished goods 19,000 tons Machine hours operated 3,410 Direct materials costs incurred $ 134,000 Direct labor costs incurred $ 185,000
Raw materials are added at the beginning of the process for each unit of product produced, and labor and manufacturing overhead are added evenly throughout the manufacturing process. Manufacturing overhead is applied to Work-in-Process at the rate of $50 per machine hour. Units in process at the end of the period were 75% converted.
Prepare a cost of production report for Oregon Paper Company for October. (Round answers to the nearest whole number unless otherwise noted.)
Oregon Paper Company
Cost of Production Report
For the Month Ending October 31, 2009
Summary of units in process (tons):
Beginning Answer
Units started Answer
In process Answer
Completed (Enter as a negative number.)
Answer
Ending Answer
Equivalent units in process: Materials Conversion Total
Units completed Answer Answer
Plus equivalent units in ending inventory Answer Answer
Equivalent units in process Answer Answer
Total cost to be accounted for and
cost per equivalent unit in process:
Beginning work-in-process $Answer $Answer $Answer
Current costs Answer Answer Answer
Total cost in process $Answer $Answer $Answer
Equivalent units in process