Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Cost of Units Transferred Out and Ending Work in Process The costs per equivalen

ID: 2436574 • Letter: C

Question

Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $0.30 and $2.35, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period Started and completed during the period Transferred out of Filling (completed) Inventory in process, end of period Total units to be assigned costs The beginning work in process inventory had a cost of $2,130. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar. Completed and transferred-out production Inventory in process, ending 0 48,000 48,000 5,000 53,000 3,800 48,000 51,800 2,500 54,300

Explanation / Answer

Direct material

Conversion cost

Inventory in the beginning

0

3800

Started and completed during the year

48000

48000

Units transferring out of if filing deptt

48000

51800

Inventory in process at the end of the period

5000

2500

Total

53000

54300

Cost of completed units and transferred

Beginning wip

2130

Cost of direct material consumed

14400

(48000*0.30$)

Conversion cost consumed

121730

(51800*2.35$)

Total

138260

Cost of closing wip

Cost of direct material consumed

1500

(5000*$.30)

Conversion cost consumed

5875

(2500*$2.35)

Total

7375

Direct material

Conversion cost

Inventory in the beginning

0

3800

Started and completed during the year

48000

48000

Units transferring out of if filing deptt

48000

51800

Inventory in process at the end of the period

5000

2500

Total

53000

54300

Cost of completed units and transferred

Beginning wip

2130

Cost of direct material consumed

14400

(48000*0.30$)

Conversion cost consumed

121730

(51800*2.35$)

Total

138260

Cost of closing wip

Cost of direct material consumed

1500

(5000*$.30)

Conversion cost consumed

5875

(2500*$2.35)

Total

7375