Question

Transferred-In Cost

Golding's finishing department had the following data for July:

	Transferred-In		Materials		Conversion
Units transferred out	60,000		60,000		60,000
Units in EWIP	10,000		15,000		14,000
Equivalent units	70,000		75,000		74,000
Costs:
Work in process, July 1:
Transferred-in from fabricating	$2,100
Materials	1,500
Conversion costs	3,000
Total	$6,600
Current costs:
Transferred-in from fabricating	$30,900
Materials	22,500
Conversion costs	45,300
Total	$98,700

Required:

1. Calculate unit costs for the following categories: transferred-in, materials, and conversion. Round your answers to the nearest cent.

Unit transferred-in cost	$
Unit materials cost	$
Unit conversion cost	$

2. Calculate total unit cost. Round your answer the nearest cent.
$

Answer 1

1) Unit Cost = Total Costs Accounted For / Equivalent Units Beginning WIP Add: Current Costs Total Costs Accounted for Equivalent Units Unit Cost Trid. In $2,100 $30,900 $33,000 70,000 $0.47 Materials Conversion $1,500 $3,000 $22,500 $45,300 $24,000 $48,300 75,000 74,000 $0.32 $0.65 [Ref: NOTE] NOTE: Unit Cost for Trfd. In = $33000 / 70000 units = $0.47; Unit Cost for Materials = $24000 / 75000 units = $0.32; Unit Cost for Conversion = $48300 / 74000 units = $0.65. 2) Total Unit Cost = Unit Cost for Trfd. In + Unit Cost for Materials + Unit Cost for Conversion Unit Cost for Trfd. In Unit Cost for Materials Unit Cost for Conversion Total Unit Cost $0.47 $0.32 $0.65 $1.44 ($0.47 + $0.32 + $0.65]