Question

+ ACCT 101 Ch 3 HW Question 3 of 15 ντενν τυπuies Current Attempt in Progress Overton Company has gathered the following information. 21,700 222,700 25,400 Units in beginning work in process Units started into production Units in ending work in process Percent complete in ending work in process: Conversion costs Materials Costs incurred: Direct materials Direct labor Overhead 60% 100 % $109,980 $492,896 $186,400

Answer 1

1. Complete equivalent units of production for material and conversion costs

Units transferred out = Beginning WIP + Units started into production - Ending WIP

= $21,700 + $222,700 - $25,400

= $219,000

Equivalent units of production for Materials

= Units transferred out + (Ending WIP * 100%)

= $219,000 + $25,400

= $244,400

Equivalent units of production for Materials

= Units transferred out + (Ending WIP * 60%)

= $219,000 + $15,240

= $234,240

	Materials	Conversion costs
The equivalent units of production	$244,400	$234,240

B. Determine the cost of productions

Unit cost of material costs = Total material costs / Equivalent units of material

= $109,980 / $244,400

= $0.45

Unit cost of conversion costs = Total conversion costs / Equivalent units of conversion

= (Direct labor + Overhead) / Equivalent units of conversion

= $679,296 / $234,240

= $2.9   

	Materials	Conversion costs
Unit costs	$0.45	$2.9

C.Show the assignment of costs to units transferred out and in process

Cost of units transferred out

= Units transferred out * Total unit cost of production

= $219,000 * ($0.45 + $2.9)

= $733,650

Cost of units work in process

= (Units of material * Units cost of material) + (Units of conversion cost * Units cost of conversion cost)

=(25,400 * $0.45) + (15,240 * $2.9)

= $11,430 + $44,196

= $55,626

Transferred out	$733,650
Ending work in process	$55,626