Question

WIP DIV 2 has the following information:

Beginning Units 9,100

Units Started 48,000

Ending Units 10,500

Conversion costs are 40% complete with regards to ending WIP beginning conversion costs = $92,000. Conversion costs added during the current accounting period = $222,960. What are conversion costs allocated to units transferred out?

Answer 1

Beginning Units 9,100 Units Started 48,000 Ending Units 10,500 Units transferred out 46,600

.

Physical Units Equivalent Units Units transferred out 46,600 46,600 Ending Units 10,500 4,200 Total Equivalent Units = 50,800

beginning conversion costs 92,000 $ $ + Conversion costs added during the current accounting period 222,960 Total Conversion costs to account for 314,960 Total Equivalent units 50,800 Cost per Equivalent units $ 6.20 Equivalent units for Units transferred out 46,600 conversion costs allocated to units transferred out $288.920

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