The Blending Department of Luongo Company has the following cost and production

Question

The Blending Department of Luongo Company has the following cost and production data for the month of April Costs: Work in process, April 1 $105,000 73,500 $178,500 Direct materials: 100% complete conversion costs: 20% complete Cost of work in process, April 1 Costs incurred during production in April $840,000 383,250 $1,223,250 Direct materials Conversion costs Costs incurred in April Units transferred out totaled 17,850. Ending work in process was 1,050 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April Materials Conversion Costs The equivalent units of production Compute the unit costs for the month. (Round unit costs to O decimal places, e.g. 25.) Materials Conversion Costs Unit costs

Explanation / Answer

Equivalent unit of production :

Calculate unit cost :

Cost assigned :

Transferred out = (50+25)*17850 = 1338750

Ending work in process = (1050*50+420*25) = 63000

material Conversion cost Unit transferred out 17850 17850 Ending work in process 1050 1050*40% = Equivalent unit of production 18900 18270

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