Question

Please use the numbers given in this problem only to answer the questions. Thanks!

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 1,580 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 41,000; ending inventory of 7,000 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,100 of materials and $10,912 of conversion costs; materials costs added in Polishing during the month, $209,832; labor and overhead applied in Polishing during the month, $126,500 and $258,040, 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 42580

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	42,580	36,280

.

	Material	Conversion
Unit Cost	$                    5.40	$                 10.90

.

Transferred out	$       579,954.00
Ending Inventory	$          45,430.00

Working

Reconciliation of Units
A	Opening WIP	1,580
B	Introduced	41,000
C=A+B	TOTAL	42,580
D	Transferred	35,580
E=C-D	Closing WIP	7,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	35,580			100%	35,580	100%	35,580
Closing WIP	7,000			100%	7,000	10%	700
Total	42,580			Total	42,580	Total	36,280

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 20,100	$ 10,912	$ 31,012
Cost incurred during period		$ 209,832	$ 384,540	$ 594,372
Total Cost to be accounted for		$ 229,932	$ 395,452	$ 625,384
Total Equivalent Units		42,580	36,280
Cost per Equivalent Units		$                   5.40	$                   10.90

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 5.40	7,000	$          37,800.00	35,580	$ 192,132
Conversion cost	$ 10.90	700	$             7,630.00	35,580	$        387,822.00
TOTAL	$ 625,384	TOTAL	$ 45,430	TOTAL	$ 579,954