Question

Problem 4 (20 points) requivalent units of direct materials and conversion in the Bottling Department of cartan Springs Water Company is $0.45 and $0.12, respectively. The equivalent units to be assigned costs are as follows Direct Materials Conversion Inventory in process, beginning of period 3,500 Started and completed during the period 57.000 57,000 Transferred out of Bottling (completed) 57,000 60,500 Inventory in process, end of period 3,500 1,800 Total units and costs to be assigned 60,500 62,300 The beginning work in process inventory had a cost of $2,200. Determine the cost of completed and transferred out production, and the ending work in process inventory. Completed and transferred out production Inventory in process, ending

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Mountain Springs Water Company
Cost of completed and transferred out units
	Direct Material	Conversion	Total	Note
Equivalent units	57,000.00	60,500.00		A
Cost per Equivalent unit	0.45	0.12		B
Cost of Equivalent units	25,650.00	7,260.00	32,910.00	C=A*B
Add: cost of beginning work in process			2,200.00	D
Cost of completed and transferred out units			35,110.00	E=C+D
So cost of completed and transferred out units is $ 35,110.
Cost of work in process- ending
	Direct Material	Conversion	Total	Note
Equivalent units	3,500.00	1,800.00		F
Cost per Equivalent unit	0.45	0.12		G
Cost of Equivalent units	1,575.00	216.00	1,791.00	C=F*G
So cost of work in process- ending is $ 1,791.