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Exercise 3-8 (Part Level Submission) Units transferred out totaled 19,890. Endin

ID: 2407089 • Letter: E

Question

Exercise 3-8 (Part Level Submission)


Units transferred out totaled 19,890. Ending work in process was 1,170 units that are 100% complete as to materials and 40% complete as to conversion costs.

(b) Compute the unit costs for the month. (Round unit costs to 0 decimal places, e.g. $25.)

Unit cost for the month

(c) Determine the costs to be assigned to the units transferred out and in ending work in process.

Transferred out$
Work in process
Materials$
Conversion costs
Total costs$

Exercise 3-8 (Part Level Submission)

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 $117,000       Conversion costs: 20% complete 81,900          Cost of work in process, April 1 $198,900    Costs incurred during production in April       Direct materials $936,000       Conversion costs 427,050          Costs incurred in April $1,363,050


Units transferred out totaled 19,890. Ending work in process was 1,170 units that are 100% complete as to materials and 40% complete as to conversion costs.

(b) Compute the unit costs for the month. (Round unit costs to 0 decimal places, e.g. $25.)

Unit cost for the month

(c) Determine the costs to be assigned to the units transferred out and in ending work in process.

Transferred out$
Work in process
Materials$
Conversion costs
Total costs$

Explanation / Answer

a) Equivalent unit of material = 19890+(1170*100%)= 21060 units

Equivalent unit of conversion = 19890+(1170*40%) = 20358 units

b) Unit cost of material = (117000+936000)/21060 = 50 per equivalent unit

Unit cost of conversion = (81900+427050)/20358 = 25 per equivalent unit

c) Cost of transferred out = (50+25)*19890 = 1491750

Ending work in process = (1170*50+1170*40%*25) = 70200