Exercise 17-10 Overton Company has gathered the following information. Units in
ID: 2335603 • Letter: E
Question
Exercise 17-10
Overton Company has gathered the following information.
Units in beginning work in process 21,440
Units started into production 253,560
Units in ending work in process 24,940
Percent complete in ending work in process:
Conversion costs 60 %
Materials 100 %
Costs incurred:
Direct materials $110,000
Direct labor $503,462
Overhead $185,600
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Compute equivalent units of production for materials and for conversion costs.
Materials
Conversion Costs
The equivalent units of production
Entry field with incorrect answer now contains modified data
Entry field with incorrect answer now contains modified data
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LINK TO TEXT
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Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
Unit costs
$Entry field with incorrect answer
$Entry field with incorrect answer
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LINK TO TEXT
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Show the assignment of costs to units transferred out and in process. (Round answers to 0 decimal places, e.g. 1,225.)
Transferred out
$Entry field with incorrect answer
Ending work in process
$Entry field with incorrect answer
Explanation / Answer
a) Unit transferred out = 21440+253560-24940 = 250060
Equivalent unit of material = 250060+24940 = 275000 Units
Equivalent unit of conversion = 250060+(24940*60%) = 265024 Unit
b) Calculate unit cost
Cost per equivalent unit of material = 110000/275000 = 0.40
Cost per equivalent unit of conversion = (503462+185600)/265024 = 2.60 per unit
c) Cost of units transferred out = (0.40+2.60)*250060 = $750180
Cost of ending work in process = (24940*0.40+14964*2.60) = $48882
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