Question

The Polishing Department of Bramble Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.

Production: Beginning inventory 1,680 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 47,000; ending inventory of 5,800 units 10% complete as to conversion costs.

Manufacturing costs: Beginning inventory costs, comprised of $21,700 of materials and $75,836 of conversion costs; materials costs added in Polishing during the month, $236,304; labor and overhead applied in Polishing during the month, $127,100 and $257,740, 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		enter a number of units		enter a number of units

eTextbook and Media

  

  

Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25.)

		Materials		Conversion Costs
Unit costs		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places

eTextbook and Media

  

  

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 0 decimal places, e.g. 1,225.)

Transferred out		$enter a dollar amount rounded to 0 decimal places
Ending work in process

Answer 1

1.Equivalent units of production - FIFO C Beginning inventory units started and completed=47000-1680 Ending inventory Equivalent units of production Units % Material EUP- Material % conversion EUP- conversion b a*b a*c 1,680 0% 0 70% 1176 45,320 100% 45320 100% 45320 5,800 100% 5800 10% 580 51120 47076 2.Cost per equivalent unit of production Costs incurred this period + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Material 236304 51120 EUP 4.62 conversion 3,84,840 127100+257740 47076 8.17 EUP 3.Cost of units transferred out: EUP Cost per EUP Total cost a*b a b cost in beginning work in process=21700+75836 97,536.00 cost to complete beginning work in process Material conversion 0.00 1176.00 4.62 8.17 9,607.92 9,607.92 45320 4.62 Units started and completed Material conversion Total costs of goods transferred out 2,09,378 3,70,264 45320 8.17 5,79,643 686787 3. Costs of ending goods in process EUR EUP Cost per EUP Total cost a b a*b 5800 4.62 Material conversion Total cost of ending goods in process 26,796 4,739 580 8.17 31535