Question

Exercise 16-11 (Part Level Submission) The Polishing Department of Major Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process Production: Beginning inventory 1,630 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 6,900 units 10% complete as to conversion costs Manufacturing costs: Beginning inventory costs, comprised of $21,400 of materials and $48,694 of conversion costs; materials costs added in Polishing during the month, $236,872; labor and overhead applied in Polishing during the month, $126,100 and $258,140, respectively

Questions:

1. Compute the equivalent units of production for materials and conversion costs for the month of September.

The equivalent units of production	Materials:	Conversion Costs:
	?	?

2. Compute the unit costs for materials and conversion costs for the month. (round unit costs to 2 decimals places)

Unit Costs	Materials:	Conversion Costs:
	?	?

3. Determine the costs to be assigned to the units transferred out and in process. (round unit costs to 2 decimal places)

Transferred out:	$ ?
Ending work in process	$ ?

Answer 1

Answers

• All working forms part of the answer
• Requirement 1

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	40,230 [1630 + 45500 – 6900]	100%	40,230	100%	40,230
Units of ENDING WIP	6,900	100%	6,900	10%	690
Equivalent Units of Production = Answer			47,130 = Answer		40,920 = Answer

• Requirement 2

COST per EUP			Material		Conversion
Cost of Beginning WIP			$          21,400.00		$                                  48,694.00
Cost incurred during the period			$        236,872.00		$                                384,240.00
Total Costs		Costs	$        258,272.00	Costs	$                                432,934.00
Equivalent units of production		EUP	47,130	EUP	40,920
Cost per EUP = ANSWER			$              5.47999 or $ 5.48 answer		$                                   10.58001 or $ 10.58 = Answer

• Requirement 3

--Transferred Out answer

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	40,230	$                      5.48	$        220,460.40
- Conversion	40,230	$                    10.58	$        425,633.40
Total Cost transferred Out				$            646,093.80 = Answer

--Ending WIP Answer

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	6,900	$                      5.48	$          37,812.00
- Conversion	690	$                    10.58	$             7,300.20
Total cost of ending WIP				$              45,112.20 =Answer