Production Costs Started and completed 10,000 units. started 2,000 units that ar

Question

Production Costs Started and completed 10,000 units. started 2,000 units that are 40% completed at August 31, 1. Beginning work in process Materials Labor 45,000 13,600 16,100 Manufacturing overhead Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Lasso Company uses the FIFO method to compute equivalent units Your answer is correct. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs The equivalent units of production 12000 10800 SHOW SOLUTION SHOW ANSWER VIDEO: APPLIED SKILLS LINK TO TEXTLINK TO TEXT Attempts: 3 of 5 used

Explanation / Answer

assignment of costs:

working:

materials cost = 45,000 / 12,000 =>$3.75 per unit.

conversion cost = (13,600 + 16,100) / 10,800

=>$2.75 per unit.

now,

transferred out cost = (2.75 +3.75) * 10,000 units =>$65,000

material cost in work in process = 2,000 units * 3.75 =>7,500.

conversion costs = $2.75 per unit * 2,000 * 40% complete =>$2,200

transferred out 65,000 work in process august 31 materials $7,500 conversion costs $2,200 $9,700 total costs $74,700

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