Question

The Cutting Department of Cassel Company has the following production and cost data for July. 1. 2. Production Transferred out 13,500 units. Started 4, 100 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31. Costs Beginning work in process Materials Labor Manufacturing overhead $0 66,880 16,304 22,000 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

Answer 1

Materials Conversion costs $ 3.80 $2.40 Calculation: firstly, 13,500 we will calculate total equivalent units Conversion Materials costs Units transferred out 13,500 Add: work in process, July 31 (4 100 units x 100 %) 4,100 2,460 (4, 100 units X 60%) To tal equivalent units 17,600 15, 960 Now, Materials cost per unit Total Materials costs Total equivalent units of Materials $ 66,880 & 17,600 units $ 3.80 - Conversion costs per unit - Total Labor costs + Total Manufact- uring overhead) & Total equivalent units of conversion = ($16,304 + $22,000) = 15,960 units $38,304 ÷ 15,960 units $2.40