The Assembly Department of Nitz Company has the following production and cost data at the end of May, 2020. Production: 30,000 units started into production; 25,000 units transferred out and 5,000 units 100% completed as to materials and 40% completed as to conversion costs. Manufacturing Costs: Materials added at beginning of process, $90,000; labor, $75,000; overhead $60,000.Required:Prepare a production cost report for the month of May.

$225,000

Explanation:

Preparation of NITZ COMPANY production cost report for the month of May.

NITZ COMPANY

Assembly Department Production Cost Report

For the Month Ended May 31, 2020

PHYSICAL UNITS

QUANTITIES

Units to be accounted for

Work in process, May 1 $0

Started into production 30,000

Total units 30,000

Units accounted for

Transferred out 25,000

Work in process, May 5,000

Total units accounted for 30,000

EQUIVALENT UNITS

MATERIALS

Transferred out 25,000

Work in process, May 5,000

Total units accounted for 30,000

CONVERSION COSTS

Transferred out 25,000

Work in process, May (40%×5,000)2,000

Total units accounted for 27,000

COSTS

MATERIALS

Unit costs

Costs in May 90,000

÷Equivalent units 30,000

=Unit costs $3.00

CONVERSION COSTS

Unit costs

Costs in May( 75,000 +60,000) 135,000

÷Equivalent units 27,000

=Unit costs $5.00

TOTAL

Material:Costs in May 90,000

Conversion costs in May(75,000+60,000) 135,000

=$225,000

Materials:unit costs 3.00

Conversion cost: units costs 5.00

=$8.00

Costs to be accounted for

CONVERSION COSTS

Work in process, May 1 $0

Started into production $225,000

Total costs$225,000

Cost Reconciliation Schedule

Costs accounted for

CONVERSION COSTS

Transferred out (25,000 × $8.00)$200,000

Work in process, May 31

Materials (5,000 × $3.00) $15,000

Conversion Costs (2,000 × $5.00) $10,000

Total costs$225,000

Therefore the Total costs for NITZ COMPANY will be $225,000

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