Question

CES Exercise 3-9 (Video) Baden Company has gathered the following information. 44,400 8,200 Units in beginning work in proces
Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Unit co
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Answer #1
Materials Conversion
Equivalent units of production 44400 39480
Materials Conversion
Unit cost $      1.80 $          4.45
Cost of Units transferred out $ 226,250.00
Cost of ending WIP $   29,356.00

Workings:

Production Cost Report
Equivalent Units
Physical Conversion
Quantities Units Materials Costs
Units to be
accounted for
Beginning WIP 0
Started into 44400
production
Total Units 44400
Units accounted
for
Transferred Out 36200 36200 36200
Ending WIP 8200 8200 3280
Total Units 44400 44400 39480
Conversion
Costs Materials Costs Total
Unit Costs
Total Costs $   79,920.00 $ 175,686.00 $ 255,606.00
Equivalent Units 44400 39480
Unit Costs $             1.80 $             4.45 $              6.25
Costs to be
accounted for
Beginning WIP $                  -  
Started into $   79,920.00 $ 175,686.00 $ 255,606.00
production
Total $ 255,606.00
Costs accounted
for
Transferred Out (W.N.1) $ 226,250.00
Ending WIP (W.N. 2) $    29,356.00
Total $ 255,606.00
W.N.1
Cost of units transferred out
Units Cost/unit Costs
Materials 36200 $      1.80 $    65,160.00
Conversion 36200 $      4.45 $ 161,090.00
$ 226,250.00
W.N.2
Cost of Closing WIP
Units Cost/unit Costs
Materials 8200 $      1.80 $    14,760.00
Conversion 3280 $      4.45 $    14,596.00
$    29,356.00
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