Question

Cost of Production The Blending Department of Manderlee Cosmetics had 10,200 units in work in process at the beginning of the period, which were 80% complete. During the period, 32,800 units were completed and transferred to the Packaging Department. There were 4,400 units in process at the end of the period, which were 25% complete. The Blending Department received 27,000 units of Direct Materials. Direct Materials are placed into process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. Use the table provided below. Equivalent Units Whole Direct Units Materials Conversion Units charged to production: Inventory in process, beginning Received from materials storeroom Total units secounted for by the Department complete) Units to be assigned cost Inventory in proces, beginning Started and completed Transferred Inventory in process, ending Total units to be assigned cost complete) The costs per equivalent unit of direct materials and conversion in the Mixing Department of Marvelous Marmalade Company are $2.00 and 58.00, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 5,000 Started and completed during the period 12.800 12.800 Transferred out of Filling (completed) 12,800 17.800 Inventory in process, end of period 6,000 2.200 Total units to be assigned cost 18,800 20,000 The beginning work in process inventory had a cost of $40,000 Determine the cost of completed and transferred-out production and the ending work in process inventory

Answer 1

Equivalent Units Whole Direct Units Materials Conversion Units charged to production: Inventory in process, beginning Received from material storeroom Total units accounted for by the Department 10.200 27,000 37,200 Units to be assigned cost: Inventory in process, beginning ( 80% complete) Started and completed Transferred Inventory in process, ending (25% complete) Total units to be assigned cost 10,200 22,600 32,800 4,400 37,200 22,600 22,600 4,400 27,000 2,040 22,600 24,640 1,100 25,740