Question

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 1.660 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 40,600; ending inventory of 6,400 units 10% complete as to conversion costs Manufacturing costs: Beginning inventory costs, comprised of $21,700 of materials and $9,660 of conversion costs; materials costs added in Polishing during the month $181.148; labor and overhead applied in Polishing during the month 5127 200 and $257 340, respectively X Your answer is incorrect Compute the equivalent units of production for materials and conversion costs for the month of September Materials Conversion Costs The equivalent units of production 40000 36550 e Textbook and Media X Your answer is incorrect Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, s. 225) Materials Unit costs Conversion Costs 10.48 $ $ e Textbook and Media X Your answer is incorrect. Determine the costs to be assigned to the units transferred out and in process. (Roundunit costs to 2 decimal places, eg 2.25 and final answers to decimal places, es 1.225) Transferred out $ 554964 Ending work in process $ 26090 e Textbook and Media

Answer 1

Solution:

Requirement 1 Physical Units Units Reconciliation Units to be accounted for: Beginning Work in process Started into production Total Units 1,660 40,600 42,260 Units accounted for : Completed and transferred out Work in process, March 31 Total units 35,860 6,400 42,260 EUP-Mat. % Conv. EUP-Conv. Equivalent Units of Production (EUP) - Weighted Average Method Units Units in ending inventory 6,400 Units completed and transferred out 35,860 Equivalent Units of Production 42,260 % Material 100% 100% 640 6,400 35,860 42,260 10% 100% 35,860 36,500

Requirement 2 Cost per Equivalent Unit of Production Costs of beginning inventory Costs incurred this period Total costs + Equivalent units of production Cost per equivalent unit of production Materials $21,700 $1,81,148 $2,02,848 42,260 $4.80 Conversion $9,660 $3,84,540 $3,94,200 36,500 $10.80 Costs Costs EUP EUP

Requirement 3 EUP 35,860 35,860 Cost per EUP Total cost $4.80 $1,72,128 $10.80 $3,87,288 Cost Assignment Cost of units transferred out Direct Materials Conversion Total costs transferred out Costs of ending work in process Direct materials Conversion Total cost of ending work in process $5,59,416 EUP 6,400 640 Cost per EUP Total cost $4.80 $30,720 $10.80 $6,912 $37,632