Question

The Blending Department of Luongo Company has the following cost and production data for the month of April. $119,000 Costs: Work in process, April 1 Direct materials: 100% complete Conversion costs: 20% complete Cost of work in process, April 1 Costs incurred during production in April Direct materials Conversion costs Costs incurred in April 83,300 $202,300 $952,000 434,350 $1,386,350 Units transferred out totaled 20,230. Ending work in process was 1,190 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April, Materials Conversion Costs The equivalent units of production VIDEO: SIMILAR EXERCISE LINK TO TEXT LINK TO TEXT

Answer 1

1. Equivalent units of production for materials and conversion costs

	Units	% Material	EU Material	% conversion	EU conversion
Units trf out	20230	100	20230	100	20230
Ending WIP	1190	100	1190	40	476
Total units	21,420		21,420		20706

a. EU of production for materials = 21,420

For conversion,= 20706

2. Unit cost of EU of production

	Material	conversion
Cost of beg WIP	119,000	83,300
Cost Inc during the month	952,000	434,350
Total	1,071,000	517,650
EU	21420	20706
Cost per EU	$50	$25

3.

Total costs
Cost of units trf out	EU	Cost per EU	Total cost
DM	20230	50	1,011,500
Conversion	20230	25	505,750
TC trf out			$1,517,250
Cost of end WIP
DM	1190	50	59,500
Conversion	476	25	11,900
TC of end WIP			$71,400