Mendell Company had zero units in its work in process inventory completed and tr
ID: 2336391 • Letter: M
Question
Mendell Company had zero units in its work in process inventory completed and transferred out 20,000 units and there were st ending inventory. The 4000 units in ending work-in-process were and 100% complete as to materials. still 4000 units left in work in process 20% complete as to conversion cost Required a. Ho w many units were in production during the period? b. Compute equivalent Units for materials, using the average method. c. Compute the Equivalent Units for Conversion Cost, using the average method. if total cost of Materials is $$128,000 and total conversion cost is $72,960, calculate the cost of goods transferred out and the cost of ending work in process. d.Explanation / Answer
a Units in production during the period = 20000+4000 = 24000 b Equivalent units of production (EUP)- Average method Units %Materials EUP-Materials %Conversion EUP-Conversion Units completed and transferred out 20000 100% 20000 100% 20000 Ending work in process 4000 100% 4000 20% 800 Total units 24000 24000 20800 Equivalent units for materials = 24000 c Equivalent units for Conversion cost = 20800 d Cost per equivalent unit of production Materials Conversion Total costs 128000 72960 ÷ Equivalent units of production 24000 20800 Cost per equivalent unit of production 5.33333 3.50769 Total cost accounted for: Cost of goods transferred out EUP Cost per EUP Total cost Direct materials 20000 5.33333 106667 Conversion 20000 3.50769 70154 Total cost of goods transferred out 176821 EUP Cost per EUP Total cost Cost of ending work in Process Direct materials 4000 5.33333 21333 Conversion 800 3.50769 2806 Total Cost of ending work in Process 24139