Question

Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $0.60 and $0.60, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 4,000 Started and completed during the period 67,000 67,000 Transferred out of Filling (completed) 67,000 71,000 Inventory in process, end of period 5,000 1,500 Total units to be assigned costs 72,000 72,500

The beginning work in process inventory had a cost of $2,520. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production $-------------

Inventory in process, ending $--------------------

Answer 1

1.

Completed and transferred-out production:
Beginning work in process inventory	2520
To complete Beginning work in process inventory	2400	4000*0.60
Cost of units Started and completed during the period	80400	67,000(0.60+0.60)
Completed and transferred-out production	85320

2.

Inventory in process, ending:
Direct Materials cost	3000	5000*0.60
Conversion cost	900	1500*0.60
Inventory in process, ending	3900