Unit Cost and Cost Assignment, Nonuniform Inputs Loran Inc. had the following eq
ID: 2548388 • Letter: U
Question
Unit Cost and Cost Assignment, Nonuniform Inputs
Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September:
Required:
1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent.
2. Calculate the cost of units transferred out and the cost of EWIP. Round unit cost value to the nearest cent in intermediate calculations. If required, round final answers to the nearest dollar.
Materials Conversion Units completed 180,000 180,000 Add: Units in ending WIP x Fraction complete 74,000 47,360 (74,000 x 64%) Equivalent units of output 254,000 227,360 Costs: Work in process, September 1: Materials $147,000 Conversion costs 7,875 Total $154,875 Current costs: Materials $1,145,000 Conversion costs 363,895 Total $1,508,895Explanation / Answer
Answer 1:-
Calculation of unit cost for materials, for conversion, and in total for the fabrication department for September:-
Unit Material Cost
=($147,000+$1,145,000)/254,000
=$1,292,000/254,000= 5.09
Unit Conversion Cost
=($7,875+$363,895)/227,360
=$371,770/227,360= 1.64
Total Unit Cost=5.09+1.64=6.73
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