At Sunrise Corporation, direct materials are added at the beginning of the proce

Question

At Sunrise Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: WIP beginning (50% conversion) = 19, 200 units Units Started = 120, 500 units Units completed and transferred out = 116,700 units WIP ending (60% for conversion) = 23,000 units Beginning WIP direct materials = $35,000 units Beginning WIP conversion costs = $22,500 Cost of Materials added = $384,100 Cost of conversion added $271,125 What is the total cost of units competed and transferred out? a. 632,625 b 612,675 c. 563,317 d. 615,381

Explanation / Answer

Calaculation of Effective Unit produced Material Conversion cost Unit Degree of Completion Unit Degree of Completion Unit Opening 19200 100% 19200 100% 19200 Started & Completed 97500 100% 97500 100% 97500 Closing 23000 100% 23000 60% 13800 139700 130500 Total Cost incurred 419100 293625 cost per effective unit produced $ 3.00 $ 2.25 Calculation of Total cost of units completed & transferred Material Conversion cost Total Cost Total Cost of unit transferred & completed $ 350,100.00 $ 262,575.00 $ 612,675.00

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