(a) Materials Conversion Costs The Blending Department of Luongo Company has the

Question

(a)

Materials

Conversion Costs

The Blending Department of Luongo Company has the following cost and production data for the month of April.
Costs:    Work in process, April 1       Direct materials: 100% complete $109,000       Conversion costs: 20% complete 76,300          Cost of work in process, April 1 $185,300    Costs incurred during production in April       Direct materials $872,000       Conversion costs 397,850          Costs incurred in April $1,269,850
Units transferred out totaled 18,530. Ending work in process was 1,090 units that are 100% complete as to materials and 40% complete as to conversion costs.

Explanation / Answer

The equivalent units of production: Materials 19620 =18530+1090 Conversion Costs 18966 =18530+(1090*40%)

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