Question

Trek Company has the following production data for April: units transferred out 40,500, and ending work in process 5,870 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $4 and unit conversion cost is $10.

Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Transferred out		$enter a dollar amount of the costs to be assigned to the units
Ending work in process		$enter a dollar amount of the costs to be assigned to the units

Answer 1

Solution

Transferred out	$             567,000
Ending Work in process	$                46,960

Working

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 4.00	5,870	$          23,480.00	40,500	$ 162,000
Conversion cost	$ 10.00	2,348	$          23,480.00	40,500	$ 405,000
TOTAL	$ 613,960	TOTAL	$ 46,960	TOTAL	$ 567,000