Question

-/1 Current Attempt in Progress 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 1,580 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 5,200 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $21,400 of materials and $57,620 of conversion costs; materials costs added in Polishing during the month, $204,584; labor and overhead applied in Polishing during the month, $126,100 and $257,240, respectively. Compute the equivalent units of production for materials and conversion costs for the month of September, Materials Conversion Costs The equivalent units of production Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, eg. 2.25.) Materials Conversion Costs Unit costs $ $ Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to decimal places, e.g. 1,225.) Transferred out $ $ Ending work in process

Answer 1

Equivalent Units Conversion Physical Units Materials Units to account for: Beginning work in process Started in Production Total units to account for 1,580 45,500 47,080 Units account for: Completed and transferred out Ending work in process 1 Equivalent units of production 41,880 5,200 47,080 100% 100% 41,880 5.200 47,080 100% 10% 41,880 520 42,400 Costs to account for Beginning work in process Cost added during period Total costs to accounted for Divided by Total equivalent units 2 Unit costs Materials $21,400 $204,584 $225,984 47,080 S4.80 Conversion Total $57,620 $79,020 $383,340 $587,924 $440,960 $666,944 42,400 $10.40 Costs account for: 3 Completed and transferred out 4 Ending work in process $201,024 $24,960 $435,552 $5,408 $636,576 $30,368