Question

Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $0.40 and $0.10, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 1,600 Started and completed during the period 42,000 42,000 Transferred out of Filling (completed) 42,000 43,600 Inventory in process, end of period 8,000 2,000 Total units to be assigned costs 50,000 45,600 The beginning work in process inventory had a cost of $1,800. Determine the cost of completed and transferred-out production and the ending work in process inventory. Completed and transferred out of production $ Inventory in process, ending $

Answer 1

	Direct Materials	Conversion costs	Total costs
Inventory in process, balance			1600
Inventory in process , beginning of the period		1600*0.1	160
Cost of completed beginning work in process			1760
started and completed during the period	16800	4200	21000
	(42000*0.4)	(42000*0.1)
Transferred out of filling (completed)			22760
Inventory in process, end of period	3200	200	3400
	(8000*0.4)	(2000*0.1)
Total costs assigned by the filling dept			26160

completed and transferred out production $22,760

Inventory in process, ending $3400