Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 44,400 Units in ending work in process 8,200 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $79,920 Direct labor $65,500 Overhead $110,186Instructions (a) Compute equivalent units of production for materials and for conversion costs. (b) Determine the unit costs of production. (c) Show the assignment of costs to units transferred out and in process.

Question

Chad Mayer

Business

19 September, 10:41

Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 44,400 Units in ending work in process 8,200 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $79,920 Direct labor $65,500 Overhead $110,186Instructions (a) Compute equivalent units of production for materials and for conversion costs. (b) Determine the unit costs of production. (c) Show the assignment of costs to units transferred out and in process.

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Ryder · Answer 1

Materials Conversion Cost

Units transferred out = (44,400-8,200) = 36,200 36,200

Units in ending work in progress (8200*40%) 8200 3280

equivalent units of production 44,400 39,480

b)

Units cost of production

Costs incurred (65,500+110,186) 79,220 175,686

units of production 44,400 39,480

1.78 4.45

C)

Units transferred out = 36,200 * 1.78 = 64,436

36,200*4.45 = 161,090

225,526

Units in ending work in progress - (8200*1,78) + (3280*4.45)

=14,596+14,596 = $29,192