Homework Answers
Unit Cost of Production :-
|
Materials |
Conversion Cost |
|
|
Unit Costs |
$1.70 |
$4.35 |
Unit Cost = Total cost/Equivalent units
Material Equivalent unit = Units transferred + Ending WIP
Units transferred = 44000 – 7700 = 36300 units
Material Equivalent unit = 36300 + (7700 * 100%) = 44000 units
Unit Cost for material = $74800/44000 units = $1.70
Conversion Equivalent unit = 36300 + (7700 * 40%) = 39380 units
Unit Cost for Conversion = ($68000 + $103300)/39380 = $4.35
Cost of Units transferred out and in process:-
|
Units transferred out |
$219615 |
|
Units in Ending Work in Process |
$26488 |
Units transferred out = 36300 * ($1.70 + $4.35) = $219615
Units in Ending Work in Process = (7700 * $1.70) + (3080 * $4.35) =
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