(a) Materials Conversion Costs SHOW SOLUTION LINK TO TEXT (b) Materials Conversi
ID: 2396506 • Letter: #
Question
(a)
Materials
Conversion Costs
SHOW SOLUTION
LINK TO TEXT
(b)
Materials
Conversion Costs
SHOW SOLUTION
LINK TO TEXT
LINK TO TEXT
(c)
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
a. Materials Conversion Costs The equivalent units of production 19,620 18,966 Working: Direct Materials Conversion Costs Physical units % Equivalent Units % Equivalent Units Units completed 18,530 100% 18,530 100% 18,530 Ending Units 1,090 100% 1,090 40% 436 Total 19,620 18,966 b. Direct Materials Conversion Unit Costs $ 50 $ 25 Working: Direct Materials Conversion Beginning Work in process $ 1,09,000 $ 76,300 Cost incurred during the period $ 8,72,000 $ 3,97,850 Total costs $ 9,81,000 $ 4,74,150 ÷ Equivalent Units 19,620 18,966 Unit Costs $ 50 $ 25 c. Total Costs Transferred out $13,89,750 Ending Work in process $ 65,400 Working: Equivalent Units Unit Costs Total Costs Total Costs Units completed: Direct Material 18,530 $ 50 $ 9,26,500 Conversion Costs 18,530 $ 25 $ 4,63,250 $ 13,89,750 Ending Units: Direct Material 1,090 $ 50 $ 54,500 Conversion Costs 436 $ 25 $ 10,900 $ 65,400
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