Question
Overton Company has gathered the following information.
Units in beginning work in process 20,700 Units started into production 180,900 Units in ending work in process 25,350 Percent complete in ending work in process: Conversion costs 60 % Materials 100 % Costs incurred: Direct materials $100,800 Direct labor $388,090 Overhead $186,290 Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs The equivalent units of production Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Unit costs s Show the assignment of costs to units transferred out and in process. (Round answers to 0 decimal places, e.g. 1,225.,) Transferred out Ending work in process
Explanation / Answer
Unit transferred out = 20700+180900-25350 = 176250
Calculate unit cost
Cost of unit transferred out = (3.50*176250) = $616875
Cost of ending work in process = (25350*.5+15210*3) = $58305
EUP-material EUP-conversion Unit transferred out 176250 176250 Ending work in process 25350 25350*60% = 15210 Equivalent unit of production 201600 191460