Chapter 16 Writing Activity CT16-4
DO IT 16-4In March, Kelly Company had the following unit production costs: materials $10 and conversion costs $8. On March 1, it had no work in process. During March, Kelly transferred out 22,000 units. As of March 31, 4,000 units that were 40% complete as to conversion costs and 100% complete as to materials were in ending work in process.
(a) Compute the total units to be accounted for.
(b) Compute the equivalent units of production.
(c) Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process.
You must complete all 3 parts of the problem to earn full credit. You must submit your response in Word.
You should draft your response in memo form. You do not need to worry about APA formatting or references.
You should take special note of the instructions of the problem. Those say “Answer her questions and include any additional information you think would be helpful”. You should take that literally. I’d like you to write a memo about production costs, equivalent units, and production reports in general. Your memo should be at least 750 words.