Production information shows the following costs and units for the smoothing department in August. Cost Units...

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Production information shows the following costs and units for the smoothing department in August. Cost Units Work in process

business accounting

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Answer 1

Answer #1

Transferred out cost $ 29,120

Ending inventory cost $ 2,850

As specific method is not mentioned in the question and opening inventory Conversion cost % is not given, average unit cost method is used
Calculation of Equivalent units

	Total Units	Materials Units	Conversion cost Units

Opening units fully completed	630	630	630
New units & fully completed	1190	1190	1190
New units & partially completed	600	600	60

Equivalent units		2420	1880

Cost		Materials Cost	Labor cost	Total
Opening WIP cost		1550	2400
This year cost		6920	21100

Total cost		8470	23500	31970

Transferred out cost		6370	22750	29120
		=(8470/2420*(630+1190)	=(23500/1880*(1190+630))

Ending inventory cost		2100	750	2850
		=(8470/2420*(600))	=(23500/1880*(60))

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Answer 2

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Production information shows the following costs and units for the smoothing department in August. Cost Units...

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