Question

Exercise 16-11 The Polishing Department of Major Company has the following production and manufacturi cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 1,580 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 45,500; ending inventory of 5,200 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $21,400 of materials and $58,044 of conversion costs; materials costs added in Polishing during the month, $204,584; labor and overhead applied in Polishing during the month, $126,100 and $257,240, respectively. Compute the equivalent units of production for materials and conversion costs for the month of September Materials Conversion Costs The equivalent units of production 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 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

Answer 1

Part A

	Materials	Conversion Costs
Total equivalent units of production	47080	42400

Units to be accounted for	Physical Units
Work in process, September 1	1580
Units started into production	45500
Total units	47080
Units accounted for
Units complete and transferred out	41880 (47080-5200)
Work in process, September 30	5200
Total units	47080

	Equivalent Units
	Materials	Conversion Costs
Units complete and transferred out	41880	41880
Work in process, September 30
5200 X 100%	5200
5200 X 10%		520
Total equivalent units	47080	42400

Part B

	Materials	Conversion Costs
Unit costs	$4.80	$10.41

Work in process, September 1
Direct materials	21400
Costs added to production during September	204584
Total materials cost	225984
Material cost per unit (Total material cost / units)	$4.80

Work in process, September 1
Conversion costs	58044
Costs added to production during September (126100+257240)	383340
Total conversion costs	441384
Conversion cost per unit (Total conversion cost / units)	$10.41

Part C

Transferred out	$636995
Ending work in process	$30373

Transferred (41880*(4.80+10.41))		636995
Work in process, September 30
materials (5200*4.80)	24960
Conversion costs (520*10.41)	5413	30373
Total		$667368