What is the cost of the beginning inventory transferred out in October? What is

Question

What is the cost of the beginning inventory transferred out in October?

What is the total cost transferred out in October?

What is the cost of ending inventory at the end of October?

What is the total cost to account for during October

Beginning inventory units (80% complete as to DM; 45% complete as to DL; 30% complete as to OH) 42,600 October completed production 1,570,000 Units in ending inventory (35% complete as to DM; 15% complete as to DL; 25% complete as to OH) 28,400 Beginning inventory cost $458,482 October direct material cost per EUP $10. 74 October direct labor cost per EUP $13. 88 October overhead cost per EUP $24. 80

Explanation / Answer

Beginning inventory + units introduced closing inventory = Production completed

UNITS INTRODUCED DURING OCTOBER = 1570000+28400-42600

=1555800

What is the cost of the beginning inventory transferred out in October?

BEGINNING INVETORY COST = 458482

ADD:-DM [42600*20%*10.74] = 91504.80

ADD:-DL [42600*55%*13.88] =325208.40

ADD:- OH [42600*70%*24.80] = 739536

TOTAL COST OF BEGINNING INVENTORY TRANFERRED OUT = 1614731.20

What is the total cost transferred out in October?

= BEGINNING INVENTORY TRANSFERRED OUT + UNITS INTRODUCED AND COMPLETED

= 1614731.20 + [1555800-42699]*(10.74+13.88+24.80)

= 1614731.20 + 74777451.42

= 76392182.62

What is the cost of ending inventory at the end of October?

DM [28400*35%*10.74] = 106755.60

DL [28400*15%*13.88] = 59129.80

OH [28400*25%*24.80] = 176080

TOTAL COST OF of ending inventory at the end of October = 341965.40

What is the total cost to account for during October

= UNITS INTRODUCED AND COMPLETED + CLOSING INVENTORY

=74777451.42 + 341965.40

=75119416.82

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