Bricktown Bats buys wood as a direct material for its baseball bats. the Forming

Question

Bricktown Bats buys wood as a direct material for its baseball bats. the Forming Department processes the baseball bats, which are then transferred to the Finishing Department, where a sealant is applied. During the month of March the Forming Department began manufacturing 10,000 "Casey Sluggers." There was no beginning inventory that month. Costs added to the Forming Department that month were as follows: A total of 7,000 bats were completed and transferred to the Finishing Department in March; the remaining 3,000 bats were still in process at the end of the month. the bats in ending inventory were 100% complete with respect to materials, but were only 20% complete with respect to conversion. What was the cost of the units transferred to the Finishing Department? (Round cost per equivalent unit to 2 decimal places, e.g. 52.75 and the final answers to 0 decimal places, e.g. 5,275.)

Explanation / Answer

direct material conversion cost particulars units amount$ units amount$ finished goods 7000 7000 work in progress 3000 600 (20% complete for conversion cost) Equivalent units 10000 7600 cost 32000 16000 cost per complete unit (cost/equivalent units) 3.2 2.11 cost of units transferred material 3.2 conv cost 2.11 total cost per complete unit 5.31 conversion cost of transferred goods(7000*5.31) 37170

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