XLS Compute equivalent units, unit costs, and costs assigned. LO 3, 4), AP The P
ID: 2335101 • Letter: X
Question
XLS Compute equivalent units, unit costs, and costs assigned. LO 3, 4), AP 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 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 42,900, ending inventory of 5,000 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $175,800; labor and overhead applied in Polishing during the month, $125,680 and S257,140, respectively 18 John Wiley & Sons. Inc. All Rights Reserved. A Division of 1ohn Wiley&Sons IncExplanation / Answer
Units
Reconciliation of Units
A
Opening WIP
1,600
B
Introduced
42,900
C=A+B
TOTAL
44,500
D
Transferred
39,500
E=C-D
Closing WIP
5,000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
39,500
100%
39,500
100%
39,500
Closing WIP
5,000
100%
5,000
10%
500
Total
44,500
Total
44,500
Total
40,000
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 20,000.00
$ 43,180.00
$ 63,180.00
Cost incurred during period
$ 175,800.00
$ 382,820.00
$ 558,620.00
Total Cost to be accounted for
$ 195,800.00
$ 426,000.00
$ 621,800.00
Total Equivalent Units
44,500
40,000
Cost per Equivalent Units
$ 4.40
$ 10.65
Statement of cost
Cost
Equivalent Cost/unit
Ending WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 4.40
5,000
$ 22,000.00
39,500
$ 173,800.00
Conversion Cost
$ 10.65
500
$ 5,325.00
39,500
$ 420,675.00
TOTAL
$ 621,800.00
TOTAL
$ 27,325.00
TOTAL
$ 594,475.00
Cost to be accounted for
Beginning Work In Progress:
Cost Transferred
$ -
Material
$ 20,000.00
Conversion Cost
$ 43,180.00
$ 63,180.00
Cost incurred during period:
Cost Transferred
$ -
Material
$ 175,800.00
Conversion Cost
$ 382,820.00
$ 558,620.00
Total Cost to be accounted for
$ 621,800.00
Cost accounted for
Cost of Units transferred
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Cost Transferred
-
$ -
Material
39,500
$ 4.40
$ 173,800.00
Conversion Cost
39,500
$ 10.65
$ 420,675.00
$ 594,475.00
Cost of ending WIP
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Cost Transferred
-
$ -
$ -
Material
5,000
$ 4.40
$ 22,000.00
Conversion Cost
500
$ 10.65
$ 5,325.00
$ 27,325.00
Total Cost accounted for
$ 621,800.00
Notes
Conversation cost includes labor and Overheads Applied.
For the purpose of calculating equivalent units, Weighted average method is used.
Units
Reconciliation of Units
A
Opening WIP
1,600
B
Introduced
42,900
C=A+B
TOTAL
44,500
D
Transferred
39,500
E=C-D
Closing WIP
5,000
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