Question

Question 34 Fullerton Company has the following equivalent units for October: materials 40,000 and conversion costs 15,000. Production cost data are: Materials Conversion Work in process, October 1 $ 50,000 $ 7.500 Costs added in October 130.000 22,500 The unit production costs for October are: $3.25 Materials Cost per unit and $1.50 Conversion Costs per unit $4.50 Materials Cost per unit and $2.00 Conversion Costs per unit $3.25 Materials Cost per unit and $.50 Conversion Costs per unit 01.25 Materials Cost per unit and $.50 Conversion Costs per unit

Answer 1

1. Answer: $4.50 Materials cost per unit and $2.00 Conversion costs per unit

Calculations:

	Materials	Conversion
Work in process, October 1	$50,000	$7,500
Costs added in October	$130,000	$22,500
Total production cost	$180,000	$30,000
÷ Equivalent units	40,000	15,000
Unit production cost	$4.50	$2.00

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2. Answer: 130,000

Calculations:

Total units to be accounted for	200,000
Ending work in process	-70,000
Units transferred out	130,000

.

3. Answer: $5.52

Calculations:

Materials
Total material costs		$100,000
÷ Equivalent units of Material:
Units transferred out [25,000 - 12,500 Ending WIP]	12,500
Ending Work in process inventory [12,500 x 45%]	5,625	18,125
Cost per unit		$5.52

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4. Answer: 46,500

Calculations:

Units transferred out	40,000
Add: Units in ending work in process	6,500
Less: Units in beginning inventory	0
Units started into production	46,500

.

5. Answer: $14.00

Calculations:

	Materials	conversion costs	Total
Total cost	$80,000	$90,000
÷ Equivalent units	10,000	15,000
= Total manufacturing Cost per unit	$8.00	$6.00	$14.00