Cost of Units Transferred Out and Ending Work in Process The costs per equivalen
ID: 2476898 • 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:
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.
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 57,900Explanation / Answer
Details Materials Conversion Total Equivalent units completed & Transferred 52,000 55,100 Cost Per Eq units $ 2.20 $ 2.95 Total Cost $ 114,400 $ 162,545 $ 276,945 Add: Beginning WIP value 2,170 $ 2,170 Total Cost of Units Transferred Out $ 279,115 Ending Inventory in Process Equivalent units ending inventory WIP 7,000 2,800 Cost Per Eq units $ 2.20 $ 2.95 Total Cost $ 15,400 $ 8,260 $ 23,660