Baden Company has gathered the following information. Instructions (a) Compute e
ID: 2530563 • Letter: B
Question
Baden Company has gathered the following information.
Instructions
(a)
Compute equivalent units of production for materials and for conversion costs.
(b)
Determine the unit costs of production.
(c)
Show the assignment of costs to units transferred out and in process.
Units in beginning work in process -0-? Units started into production 36,000 Units in ending work in process 6,000 Percent complete in ending work in process: Conversion costs 40%? Materials 100%? Costs incurred: Direct materials $72,000 Direct labor $61,000 Overhead $101,000Explanation / Answer
Answers
Reconciliation of Units
Opening WIP
0
Introduced
36000
TOTAL
36000
Transferred
30000
Closing WIP
6000
Statement of Equivalent Units [Answer (a)]
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
30000
100%
30000
100%
30000
Closing WIP
6000
100%
6000
40%
2400
Total
36000
Total
36000 units
Total
32400 units
Cost per Equivalent Units [Answer (b)
COST
Material cost
Conversion cost
TOTAL
Current cost
$72000
$162000
$234000
Total Equivalent Units
36000
32400
Cost per Equivalent Units
$2
$5
$7
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
2.0000
6000
12000
30000
60000
0
Conversion cost
5.0000
2400
12000
30000
150000
0
0
Total
7.0000
TOTAL
$24000
TOTAL
$210000
Reconciliation of Units
Opening WIP
0
Introduced
36000
TOTAL
36000
Transferred
30000
Closing WIP
6000
Statement of Equivalent Units [Answer (a)]
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
30000
100%
30000
100%
30000
Closing WIP
6000
100%
6000
40%
2400
Total
36000
Total
36000 units
Total
32400 units
Cost per Equivalent Units [Answer (b)
COST
Material cost
Conversion cost
TOTAL
Current cost
$72000
$162000
$234000
Total Equivalent Units
36000
32400
Cost per Equivalent Units
$2
$5
$7
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
2.0000
6000
12000
30000
60000
0
Conversion cost
5.0000
2400
12000
30000
150000
0
0
Total
7.0000
TOTAL
$24000
TOTAL
$210000
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