Question

For the month of September, the Ceradyne Pickle Company had cost per equivalent unit of $0.80 for materials (pickles, vinegar, spices, etc.) and $0.90 for conversion costs (labor and overhead). At Ceradyne Pickle, units are measured in quarts. The company began the month with 570 quarts of pickles. By the end of the month, the company had completed 4,100 quarts, and 860 quarts were in process. The in-process units were 100 percent complete with respect to material and 75 percent complete with respect to labor and overhead. Determine the cost of the ending Work in Process inventory and the cost of items completed and transferred to Finished Goods inventory. (Round answers to 2 decimal places, e.g. 52.75.)

Cost of the ending work in process inventory =

Cost of items completed and transferred to finished goods inventory = $6,970.00

Answer 1

	Equivalent units of production
					% mate	Materials	% cc	CC
	completed & transferred			4,100	100%	4,100	100%	4,100
	ending work in process			860	100%	860	75%	645
	Equivalent units of production					4,960		4,745
	Cost of items completed and tranferred to finished goods inventory
	4100*(.80+.90)
	6970
	cost of ending work in process
	860*.80 + 645*.90
	1268.50