Question 1 The Cutting Department of Cassel Company has the following production

ID: 2431041 • Letter: Q

Question

Question 1 The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs Transferred out 14,000 units. Started 3,100 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31 Beginning work in process Materials Labor Manufacturing overhead $0 57,969 24,160 21,200 1. 2. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the Your answer is incorrect. Try again. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production 57969 45360 LINK TO TEXT LINK TO TEXT

Explanation / Answer

1) Total equivalent units of production:

Materials: 17,100

Conversion cost: 15,860

Working:

Materials: 14,000 + (3,100*100%) = 17,100

Conversion cost: 14,000 + (3,100*60%) = $15,860

2) Unit cost:

Materials: $3.39

Conversion cost: $2.86

Working:

Materials: $57,969 / 17,100 = $3.39

Conversion cost: ($24,160?+ $21,200) /?15,860 = $2.86

Working

Costs accounted for

Transferred out

87,500

14,000*6.25

Work in process, July 31

Materials

10,509

3,100 * 3.39

Conversion costs

5,320

15,829

1,860*2.86

Total costs

103,329