Question

16 Requlred Information The following information applies to the questions displayed below.) Part 1 of 2 points QualCo manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 38,200 were in process in the Cutting department at the beginning of May and 157,500 were started and completed in May. May's Cutting department beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of May. 52.000 additional units were in process in the Cutting department and were 70% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $512,694 of direct materials and $436,341 of conversion cost charged to it during May. Its beginning inventory included $74.775 of direct materials cost and $29,193 of conversion cost. eBook Print 1. Compute the number of units transferred to Assembly. Total units transferred Assembly units

Answer 1

Answer

• Requirement 1

Units transferred = 38200 + 157500 = 195,700

• Requirement 2

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	52,000	70.0%	36,400	30.0%	15,600
Units STARTED & COMPLETED	157,500	100%	157,500	100%	157,500
Units of beginning WIP	38,200	25.00%	9,550	75.00%	28,650
Equivalent Units of Production			203,450		201,750
COST per EUP			Material		Conversion
Cost incurred this period			$       512,694.00		$                  436,341.00
Total Costs		Costs	$       512,694.00	Costs	$                  436,341.00
Equivalent units of production		EUP	203,450	EUP	201,750
Cost per EUP			$             2.52		$                          2.16

Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			103,968.00
Cost to complete beginning WIP-
- Direct Materials	9,550.00	2.52	24,066.00
- Conversion	28,650.00	2.16	61,884.00
Total cost to complete beginning WIP			189,918.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	157,500.00	2.52	396,900.00
- Conversion	157,500.00	2.16	340,200.00
Total costs started & Completed this period			737,100.00
Total cost of work finished this period				927,018.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	36,400	$                              2.52	$          91,728.00
- Conversion	15,600	$                              2.16	$          33,696.00
Total cost of ending WIP				$             125,424.00
Total costs accounted for				$         1,052,442.00