The equivalent units of production for conversion costs (January) The equivalent

Question

The equivalent units of production for conversion costs (January)

The equivalent units of production for material cost (January)

The total unit cost

Cost per unit for material

The unit cost for conversion

Ending work in process

Transferred out costs

Inter Manufacturing Company manufactures expensive chairs. The following data relates to the month of January 2007. Units Beginning Work in Process (1-1-07) 3,000 Completed and transferred out during January 10,000 Ending Work in Process (31-1-07) 5,000 Costs added during January Percentage of Completion Beginning Work in Process (1-1-07) 60% Ending Work in Process (31-1-07) 40% Costs added during January Total costs Beginning Work in Process (1-1-07) $60,300 Costs added during January $160,000 Conversion costs Beginning Work in Process (1-1-07) $5,200 Costs added during January $52,400 The company uses Weighted Average Process Costing Method and materials are added at the beginning of the process.

Explanation / Answer

Materials Conversion costs Completed and transferred out during January 10000 10000 Ending Work in Process 5000 2000 Equivalent units of production 15000 12000 Materials Conversion costs Total Total costs 220300 57600 Equivalent units of production 15000 12000 Unit cost 14.69 4.80 19.49 Ending work in process =(5000*14.69)+(2000*4.8)= 83033 Transferred out costs = 10000*19.49= 194867

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