Question

The costs per equivalent unit of direct materials and conversion in the Bottling Department of Rocky Springs Beverage Company are $2.55 and $1.4, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		1,700
Started and completed during the period	34,000		34,000
Transferred out of Bottling (completed)	34,000		35,700
Inventory in process, end of period	2,000		800
Total units to be assigned costs	36,000		36,500

The beginning work in process inventory had a cost of $1,110. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production	$
Inventory in process, ending	$

Answer 1

Completed and transferred-out production	135410
Inventory in process, ending	6220
Workings:
	Direct Materials	Conversion	Total
Started and completed during the period	34000	34000
X Cost per equivalent unit	2.55	1.4
Cost of units Started and completed	86700	47600	134300
Beginning work in process inventory	1110
Cost of units Started and completed	134300
Completed and transferred-out production	135410
	Direct Materials	Conversion	Total
Inventory in process, end of period	2000	800
X Cost per equivalent unit	2.55	1.4
Inventory in process, ending	5100	1120	6220