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11 September, 02:43

Beginning Work in Process Inventory: 175 $4,000 $325 Materials: 30% complete Conversion: 20% complete Production started during June 400 $20,000 $15,400 Production completed during June? Ending Work in Process Inventory: 125 Materials: 40% complete Conversion: 10% complete 2 Materials Conversion A $46 $30 B $48 $30 C $46 $34 D $48 $34 E None of the above 3 Calculate the cost of units transferred out to the next department. A $ 15,300 B $ 21,600 C $ 36,900 D $ 34,050 E None of the above How much is the cost of equivalent unit for Materials and Conversion? (Choose the closest answer.)

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  1. 11 September, 03:00
    0
    450 units and 450 units

    D $48 $34

    C $36,900

    Explanation:

    The computation is shown below:

    a. For Production completed during June is

    Before computing it first we have to determine the units completed and transferred out which is

    = Beginning work in process units + production started units - ending work in process units

    = 175 units + 400 units - 125 units

    = 450 units

    Now the equivalent units of production is

    Particulars Material Conversion

    Units completed & transferred out 450 units 450 units

    + Ending equivalent units

    (Ending work in process units * percentage completion) 50 units 13 units

    So,

    Equivalent units of production 500 units 463 units

    b. Now the cost of equivalent units for material and conversion cost is

    Particulars Materials Conversion

    Beginning work in process cost $4,000 $325

    + Cost added $20,000 $15,400

    Total cost $24,000 $15,725

    Divide it Equivalent units of

    production 500 units 463 units

    Cost of equivalent unit $48 $34

    c. The cost of units transferred out is

    Particulars Materials Conversion

    Units completed

    and transferred out 450 units 450 units

    Multiplied by cost of

    equivalent unit $48 $34

    Cost of units transferred out

    to next department $21,600 + $15,300 = $36,900
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