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ROMALY, INC. has several processing departments. Costs charged to the Forming Department for December 2011 totaled $1,505,000 as follows:

Work in Process, December 1
Materials		$ 103,400
Conversion costs		60,000	$ 163,400
Costs Added:
Materials added		$ 1,100,800
Labor	$ 100,000
Manufacturing Overhead	102,800
Total Conversion Costs		202,800
Total Cost added			1,303,600
Total Department Costs			$ 1,467,000

Production records show that:

60,000 units were in beginning work in process inventory

25% complete as to materials costs

70% complete as to conversion cost

410,000 units were started into production

40,000 units were in ending work in process inventory

40% complete as to materials costs

20% complete as to conversion costs.

Prepare a production cost report for the Forming Department for the month of December.

FORMING DEPARTMENT
PRODUCTION COST REPORT
FOR THE MONTH ENDED DECEMBER 31, 2011
STEPS 1 AND 2
	PHYSICAL UNITS
UNITS TO BE ACCOUNTED FOR	STEP 1
WIP, Dec 1 (Beginning Inventory)
STARTED INTO PRODUCTION
TOTAL UNITS				STEP 2
	STEP 1			EQUIVALENT UNITS
UNITS TO BE ACCOUNTED FOR	PHYSICAL UNITS			MATERIALS			CONVERSION COSTS
TRANSFERRED OUT
WIP, Dec 31 (Ending Inventory)
TOTAL UNITS
STEP 3
U N I T C O S T S
COSTS			MATERIALS		CONVERSION COSTS			TOTAL
TOTAL COSTS AS OF DECEMBER		(a)	$		$			$
EQUIVALENT UNITS		(b)
UNIT COST a/b			$		$			$
STEP 4
C O S T ACCOUNTED FOR
WIP, Dec 1 (Beginning Inventory)									$
STARTED INTO PRODUCTION
TOTAL COST FOR THE MONTH OF DECEMBER									$
COST RECONCILIATION SCHEDULE
Completed & Transferred Out									$
WIP Ending Inventory-Dec 31-Direct Material Costs(Equivalent Units)						$
WIP Ending Inventory-Dec 31-Conversion Costs (Equivalent Units)
Total Costs WIP Ending Inventory-Dec 31 (Based on equivalent units)
TOTAL COST FOR THE MONTH OF DECEMBER 2011									$

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