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 1.660 units that are 100% complete as to materials and 30% complete as to conversion costs: units started during the period are 40,600; ending inventory of 6.400 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $21,700 of materials and $9,660 of conversion costs; materials costs added in Polishing during the month, $181,148; labor and overhead applied in Polishing during the month, $127.200 and $257,340, respectively. x Your answer is incorrect Compute the equivalent units of production for materials and conversion costs for the month of September. Materials Conversion Costs The equivalent units of production 35860 36219 * Your answer is incorrect. Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, eg. 2.25.) Materials Conversion Costs 10.88 Unit costs $ 5.66 $ x Your answer is incorrect. 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 Ending work in process $ 593124 43187

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	42,260	36,500

.

	Material	Conversion
Cost per equivalent Unit	$                    4.80	$                 10.80

.

Transferred out	$             559,416
Work in process	$                37,632

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	35,860			100%	35,860	100%	35,860
Ending WIP	6,400			100%	6,400	10%	640
Total	42,260			Total	42,260	Total	36,500

.

Reconciliation of Units
A	Beginning WIP	1,660
B	Introduced	40,600
C=A+B	TOTAL	42,260
D	Transferred out	35,860
E=C-D	Ending WIP	6,400

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 21,700	$ 9,660	$ 31,360
Cost incurred during period		$ 181,148	$ 384,540	$ 565,688
Total Cost to be accounted for		$ 202,848	$ 394,200	$ 597,048
Total Equivalent Units		42,260	36,500
Cost per Equivalent Units		$                   4.80	$                   10.80	$             15.60

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 4.80	6,400	$          30,720.00	35,860	$ 172,128
Conversion cost	$ 10.80	640	$             6,912.00	35,860	$ 387,288
TOTAL	$ 597,048	TOTAL	$ 37,632	TOTAL	$ 559,416