Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work
ID: 2543784 • Letter: E
Question
Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process The blending department had the following data for the month of March: Units in BWIP — Units completed 21,600 Units in EWIP (20% complete) 2,250 Total manufacturing costs $101,430 Required: 1. What is the output in equivalent units for March? equivalent units 2. What is the unit manufacturing cost for March? Note: Round your answer to the nearest cent. $ per unit 3. Compute the cost of goods transferred out for March. $ 4. Calculate the value of March's EWIP. $
Explanation / Answer
Answer for 1
What is the Output in equivalent units for March ?
Begining Work in Progress - Nil
Completed Units - 21,600 units
Ending Work in Process - 450 units ( Equivalent Units )
( 20 % of 2,250 units - As only 20% completed )
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Total Equivalent Units 22,050 units
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Answer for 2
What is the unit Manufacturing cost for March ?
Total Manufacturing cost - $ 101,430
Total Equivalent Units - 22,050 units
Unit Manufacting cost
= Total Manufacturing cost / Total Equivalent Units
= $ 101,430 / 22,050 units
= $ 4.60
Answer for 3
Compute the cost of goods transferred out for March ?
Unit Manufacturing Cost - $ 4.60
Completed units - 21,600 units
Cost of goods transferred
= Completed units x Unit Manufacturing Cost
= 21,600 x $ 4.60
= $ 99,360
Answer for 4
Calculate the value of March's Ending Work in Process ?
Unit Manufacturing Cost - $ 4.60
Ending Work in Process - 450 units ( Equivalent Units )
( 20 % of 2,250 units - As only 20% completed )
Value of March's Ending Work in Process
= Ending Work in Process in Equivalent units x Unit Manufacturing Cost
= 450 units x $ 4.60
= $ 2,070
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