Question

ALHOSO Corporation, direct materials are added at the beginning of the process and codversions costs are uniformly applied. Other details include: ch Beginning WIP direct materials Beginning WIP conversion costs Costs of materials added Costs of conversion added WIP beginning (50% for conversion) Units started a Units completed and transferred out WIP ending (60% for conversion) $33,000 $24.250 $389,100 $274,125 24,200 units 128,500 units 110,700 units 42,000 units What is the total cost of units completed and transferred out? distrib Sim A $505,372 26 OB. $620,503.58 *. $549,072.00 OD$542.154.50 From Oxf

Answer 1

Cost per equivalent unit:

Material = ($33,000 + $389,100) / (110,700 + 42,000) = $2.76

Conversion = ($24,250 + $274,125) / [110,700 + (42,000 X 60%)] = $2.20

Total cost of units completed = ($2.76 + $2.20) X 110,700 = $549,072

Option C.

Cost per equivalent unit:

Material = ($38,000 + $387,100) / (107,700 + 40,000) = $2.88

Conversion = ($20,250 + $271,125) / [107,700 + (40,000 X60%)] = $2.21

Total cost of ending WIP = (40,000 X $2.88) + (40,000 X 60% X $2.21) = $168,240

Option D.

Cost per equivalent unit:

Material = ($48,500 + $441,100) / (120,000 + 54,200) = $2.81

Conversion = ($26,200 + $263,000) / [120,000 + (54,200 X 50%)] = $1.97

Total cost of ending WIP = (54,200 X $2.81) + (54,200 X 50% X $1.97) = $205,689

Option A.