Question

Baden Company has gathered the following information. 0 38,500 7,700 Units in beginning work in process Units started into production Units in ending work in process Percent complete in ending work in process: Conversion costs Materials Costs incurred: Direct materials Direct labor Overhead 40 % 100 % $80,850 $70,400 $105,776 Your answer is partially correct. Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs The equivalent units of production 38500 30800 eTextbook and Media X Your answer is incorrect. Determine the unit costs of production. (Round unit costs to 2 decimal places, eg. 2.25.) Materials Conversion Costs Unit costs $ $ eTextbook and Media X Your answer is incorrect. Show the assignment of costs to units transferred out and in process. Units transferred out $ Units in ending work in process $

Answer 1

a. Computation of equivalent units of production for conversion costs Particulars Units transferred and completed Units in ending wip - partially converted Conversion costs 30800 3080 Explanation 38500 - 7700 7700 * 40% Add: Equivalent units of production 33880 Answer ---- Material Particulars Equivalent units of production conversion costs 38500 33880 b. Computation of Units cost of Production Material Conversion Costs Particulars Cost incurred: Direct material Direct Labor Overhead 80850 70400 105776 Total Costs 80850 176176 Equivalent units of Production 38500 33880 Already calculated above Answer Units Costs 2.10 5.20

c. Computation of cost to units transferred out and in progress Material Conversion Costs Particulars Material cost Labor and overhead cost Explanation 64680 30800 * 2.1 160160 30800 * 5.2 Explanation 16170 7700* 2.1 16016 7700 *40% * 5.2 Answer ----- Cost allocated to units tranferred out 224840 Answer ---- Cost allocated units in ending work in progress 32186

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