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
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