Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Convers
ID: 2502568 • Letter: C
Question
Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 20% complete 70,000 Cost of work in process, April 1 $170,000 Costs incurred during production in April Direct materials $ 800,000 Conversion costs 365,000 Costs incurred in April $1,165,000Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs. Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 20% complete 70,000 Cost of work in process, April 1 $170,000 Costs incurred during production in April Direct materials $ 800,000 Conversion costs 365,000 Costs incurred in April $1,165,000
Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs. LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 20% complete 70,000 Cost of work in process, April 1 $170,000 Costs incurred during production in April Direct materials $ 800,000 Conversion costs 365,000 Costs incurred in April $1,165,000
Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs. Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April. Compute the unit costs for the month. Determine the costs to be assigned to the units transferred out and in ending work in process.
Explanation / Answer
Unit Direct Material
Conversion Cost
% of Completion Equivalent Unit % of Completion Equivalent Unit
Unit Transferred out 17000 100% 17000 100% 17000
Closing WIP 1000 100% 1000 40% 400
Total Equivalent Unit
18000
17400
Total Cost Total Equivalent Unit Cost Per Equivalent Unit
Direct material $ 900,000 18000 $ 50
Conversion Cost $ 435,000 17400 $ 25
Total Cost $ 1,335,000
$ 75
Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April.
Equivalent units of production for materials 18000
Equivalent units of production for conversion costs 17400
Compute the unit costs for the month. (Round unit costs to 0 decimal places, e.g. 15.)
Unit costs for the month $ 75
Determine the costs to be assigned to the units transferred out and in ending work in process.
Cost to the units transferred out $ 1,275,000
Cost to the unit in ending work in process $ 60,000