Question

Prepare a production cost report. E3.8 (LO 3. 4), AP The Blending Department of Luongo Company has the following cost and production data for the month of April. Determine equivalent units, unit costs, and assignment of costs. Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 20% complete 70.000 Cost of work in process, April 1 $170,000 Costs incurred during production in April Direct materials $ 800,000 Conversion costs 365,000 Costs incurred in April $1,165,000 Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs. Instructions a. Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April b. Compute the unit costs for the month. c. Determine the costs to be assigned to the units transferred out and in ending work in process

please typed no hand written thank you

Answer 1

А в с 1 a) Material Conversion | 17000 17000 3 Unit transferred out 4 Ending work in process 1000) 400 Equivalent unit of 5 production 18000 17400 6 7 b) Material Conversion Total Unit Cost 9 Beginning WIP 100000 70000 170000 10 Cost added 800000 365000 1165000 11 Total Cost 900000 435000) 1335000 12 Equivalent unit 18000 17400 13 Unit Cost 25 8 14 15 c) 16 Cost of unit transferred out = 17000*75 = 1275000 17 Cost of ending work in progress = (1000*50+400*25)=60000