Question

The Polishing Department of Major Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 1,860 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 45,100; ending inventory of 5,000 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $21,500 of materials and $69,382 of conversion costs; materials costs added in Polishing during the month, $201,560; labor and overhead applied in Polishing during the month, $127,100 and $257,840, respectively. Your answer is correct. Compute the equivalent units of production for materials and conversion costs for the month of September. Materials Conversion Costs The equivalent units of production 46960 42460 LINK TO TEXT LINK TO TEXT Your answer is correct. Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Unit costs 4.75 10.70 LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to o decimal places, e.g. 1,225.) Transferred out 5000 Ending work in process 29075

Determine the costs to be assigned to the units transferred out and in process????

Answer 1

Solution

	Total
Transferred	$ 648,282
Ending Inventory	$ 29,100

Working

Reconciliation of Units
A	Opening WIP	1,860
B	Introduced	45,100
C=A+B	TOTAL	46,960
D	Transferred	41,960
E=C-D	Closing WIP	5,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	41,960			100%	41,960	100%	41,960
Closing WIP	5,000			100%	5,000	10%	500
Total	46,960			Total	46,960	Total	42,460

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 21,500	$ 69,382	$ 90,882
Cost incurred during period		$ 201,560	$ 384,940	$ 586,500
Total Cost to be accounted for		$ 223,060	$ 454,322	$ 677,382
Total Equivalent Units		46,960	42,460
Cost per Equivalent Units		$                   4.75	$                   10.70	$             15.45

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 4.75	5,000	$          23,750.00	41,960	$ 199,310
Conversion cost	$ 10.70	500	$             5,350.00	41,960	$      4,48,972.00
TOTAL	$ 677,382	TOTAL	$ 29,100	TOTAL	$ 648,282