Question

Exercise 16-08 The Blending Department of Luongo Company has the following cost and production data for the month of April. Conta: 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 $106,000 74,200 $180,200 $848,000 386,900 $1,234,900 Units transferred out totaled 18,020. Ending work in process was 1,060 units that are 100% complete as to materials and 40% complete as 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 LINK TO TEXT LINK TO VIDEO Compute the unit costs for the month.

Answer 1

1
	Materials	Conversion costs
Units completed and transferred out	18020	18020
Work in process, ending:
1060 X 100%	1060
1060 X 40%		424
The Equivalent units of production	19080	18444
2
	Materials	Conversion
Work in process, April 1	106000	74200
Cost added during April	848000	386900
Total costs	954000	461100
Divide by Equivalent units of production	19080	18444
Unit costs	50	25
3
Transferred out	1351500	=18020*(50+25)
Ending Work in process	63600	=(1060*50)+(424*25)