Cost of Units Transferred Out and Ending Work in Process The costs per equivalen
ID: 2476741 • 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 Bottling Department of Rocky Springs Beverage Company are $2.20 and $2.95, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 3,100 Started and completed during the period 52,000 52,000 Transferred out of Bottling (completed) 52,000 55,100 Inventory in process, end of period 7,000 2,800 Total units to be assigned costs 59,000 57,900 The beginning work in process inventory had a cost of $2,170. 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 $
Explanation / Answer
the cost of completed and transferred-out production = $2170 + (3100 * 2.95) + (2.20 + 2.95) 52000 = $279115
the cost of the ending work in process inventory = 7000 * 2.20 + 2800 * 2.95 = $23660
Material $2.20 conversion $2.95 Opening WIP 0 3100 Started and completed 52000 52000 Transferred out 52000 55100 ending WIP 7000 2800 Equivalent units 59000 57900