Question

Exercise 21-08 a-c The Blending Department of Sunland Company has the following cost and production data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete Conversion costs: 20% complete Cost of work in process, April 1 Costs incurred during production in April Direct materials Conversion costs Costs incurred in April $108,000 75,600 $183,600 $864,000 394,200 $1,258,200 Units transferred out totaled 18,360. Ending work in process was 1,080 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April. Materials Conversion Costs The equivalent units of production Compute the unit costs for the month. Materials Conversion Costs Unit costs Determine the costs to be assigned to the units transferred out and in ending work in process. Transferred out Ending work in process Click if you would like to Show Work for this question: Open Show Work

Answer 1

Solution 21-08 a:

Blending Department
Equivalent units of production (EUP) - Weighted Average method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out	18360	100%	18360	100%	18360
units of Ending work in process	1080	100%	1080	40%	432
Equivalent units of production			19440		18792

Solution 21-08 b:

Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$108,000	$75,600
Cost added	$864,000	$394,200
Total Costs	$972,000	$469,800
/Equivalent units of Production	19440	18792
Cost per Equivalent unit of Production	$50.00	$25.00

Solution 21-08 c:

Cost Assignment and reconciliation
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	18360	$50.00	$918,000
Conversion	18360	$25.00	$459,000
Total transferred out			$1,377,000
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	1080	$50.00	$54,000
Conversion	432	$25.00	$10,800
Total Ending work in process			$64,800
Total costs assigned				$1,441,800

Solution 22-18a:

Sunland Company
Smelting Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	2200
Units started this period	9500
Total unit to be accounted for	11700
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 0% Conversion - 80%	2200	0	1760
Started and completed currently	8500	8500	8500
Transferred to finished goods	10700	8500	10260
Units in ending WIP Material - 100% Conversion - 40%	1000	1000	400
Total units accounted for	11700	9500	10660