Question

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Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process The blending department had the following data for the month of March: Units in BWIP Units completed 21,600 Units in EWIP (20% complete) 2,250 Total manufacturing costs $74,970 Required: 1. What is the output in equivalent units for March? equivalent units 2. What is the unit manufacturing cost for March? Note: Round your answer to the nearest cent. per unit 3. Compute the cost of goods transferred out for March. $ 4. Calculate the value of March's EWIP. $

Answer 1

Requirement 1

Equivalent units = 22,050

Working

	Units			Complete %	Equivalent units
Transferred	21,600			100%	21,600
Closing WIP	2,250			20%	450
Total	23,850			Total	22,050

Requirement 2

Cost per Equivalent unit = $3.40 Per unit

Working

Beginning WIP Inventory Cost		$ 0
Cost incurred during period		$ 74,970
Total Cost to be accounted for		$ 74,970
Total Equivalent Units		22,050
Cost per Equivalent Units		$                   3.40

Requirement 3 and 4

Transferred out	$                73,440
Work in process	$                  1,530

Working

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
	$ 3.40	450	$             1,530.00	21,600	$ 73,440