Question

The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs 1. Transferred out 13,000 units. Beginning work in process 2. Started 4,300 units that are 60% Materials complete as to conversion Labor costs and 100% complete as Manufacturing overhead to materials at July 31. $0 70,411 17,517 21,900 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production

Answer 1

Solutions:

Equivalent units of production (EUP) Units Units Transferred Out units of Ending work in process Equivalent units of production 13000 4300 %Material 100% 100% EUP-Material 13000 4300 17300 % Conversion 100% 60% EUP- Conversion 13000 2580 15580 Material Conversion Cost per Equivalent unit: Cost of beginning Work in Process Cost Addrd during the period Total Costs /Equivalent units of Production Cost per Equivalent unit of Production Costs $70,411 $70,411 Costs 17300 EUP $4.07 $39,417 $39,417 15580 $2.53 EUP $85,800 Cost Assignment and Reconciliation Costs accounted for. Transferred out Work in process, July 31 Direct Material Conversion costs Total Costs $17,501 $6,527 $24,028 $109,828 et148 ) Sheet150 Sheet262 Sheet146 (11) Sheet373