Answer:
$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
