Materials Conversion Costs Unit costs for: Materials Conversion Costs SETUP: The
ID: 2476540 • Letter: M
Question
Materials
Conversion Costs
Unit costs for:
Materials
Conversion Costs
SETUP: The Blending Department of Luongo Company has the following cost and production data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete $118,000 Conversion costs: 20% complete 82,600 Cost of work in process, April 1 $200,600 Costs incurred during production in April Direct materials $944,000 Conversion costs 430,700 Costs incurred in April $1,374,700Units transferred out totaled 20,060. Ending work in process was 1,180 units that are 100% complete as to materials and 40% complete as to conversion costs.
Explanation / Answer
Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Units Transferred Out 20,060.00 100% 20,060.00 20,060.00 100% 20,060.00 Closing WIP 1,180.00 100% 1,180.00 1,180.00 40% 472.00 Equivalent Units 21,240.00 20,532.00 Opening WIP Costs 118,000.00 82,600.00 Current Month Costs 944,000.00 430,700.00 Total Costs 1,062,000.00 513,300.00 Cost per Equivalent units 50.00 25.00 Cl WIP Units 1,180.00 472.00 Cost of Cl WIP 59,000.00 11,800.00 Units Transferred Out 20,060.00 20,060.00 Cost of Units Transferred Out 1,003,000.00 501,500.00 Note: In the above case opening WIP isnot given thus we have assumed weighted average method