Question

Baden Company has gathered the following information. 44,200 7,300 Units in beginning work in process Units started into production Units in ending work in process Percent complete in ending work in process: Conversion costs Materials Costs incurred: Direct materials Direct labor Overhead 40 % 100 % $79,560 $61,500 $109,726 Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs The equivalent units of production Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Unit costs $ $ Show the assignment of costs to units transferred out and in process. Units transferred out $ Units in ending work in process

Answer 1

Statement of equivalent units of production Materials Particulars Input Units Particulars Output Units Percentage Of Completion Conversion Cost Equivalent Percentage Of Equivalent Units Completion Units C=A*B D LE=A*D 36,900 100% 36,900 36,900 36,900 B 100% Opening work in progress Units Introduced Units Completed and transferred out Units Completed and transferred out 36,900 36,900 44,200 Closing work in progress 7,300 100% 7.300 40% 2,920 44,200 Total 44,200 44,200 39,820 Add: Less: Caluclation of Units Completed and transferred out Opening work in progress Units Introduced Closing work in progress Units Completed and transferred out 44.200 (7,300) 36,900

Materials Conversion Cost Particulars Equivalent units 44,200 39,820 Materials Particulars Costs Incurred A Equivalent units B Cost per equivalent unit Conversion Cost 79,560 || $ 44.200 1.80 || S 171,226 61500+109726 39,820 4.30 A/B S Materials Conversion Cost 1.80 IS Cost per equivalent unit 4.30 Cost of goods finished and transferred Equivalent units Material Cost for cost of finished and transferred Conversion cost for cost of finished and transferred Equivalent unit cost per unit 36,900 || $ 36,900 || $ 1.80 4.30 Total Cost $ $ | $ 66,420 158,670 225,090 Closing work in progress Equivalent units Iran Material Cost for cost of closing work in progress Conversion cost for cost of closing work in progress Equivalent unit cost per unit 7,300 || $ 2,920 || $ 1.80 4.30 Total Cost $ $ 13,140 12.556 25,696 Closing work in progress Cost of goods finished and transferred 25,696.00 225,090.00