Carlton Company has gathered the following information Units in beginning work i

Question

Carlton Company has gathered the following information

Units in beginning work in process 25,000
Units started into production 90,000
Units in ending work in process 30,000
Percent complete for conversion costs in ending work in process 60%

Costs incurred:
Direct materials $161,000
Direct labor $235,400
Overhead $176,600

Instructions
(a) Compute equivalent units of production for materials and for conversion costs.
(b) Determine the unit costs of production.
(c) Show the assignment of costs to units transferred out and in process.

Explanation / Answer

a) 25,000 + 90,000 - 30,000=85,000 units completed EUP mater=85,000 +30,000*1.00=115,000 EUP conversion=85,000+30,000*.60=103,000 b) $161,000/115,000=$1,40/unit $($235,400+176,600)/103,000=$4/unit total cost per unit=1.40+4=$5.40 c)WIP end= 30,000*1.40=$42,000 cost to mater 30,000*.60*$4=$96,000 cost to conversion Transfer out=85,000*$5.40=$459,000

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