Materials costs of $423,000 and conversion costs of $559,000 were charged to a p
ID: 2505169 • Letter: M
Question
Materials costs of $423,000 and conversion costs of $559,000 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 52,000 units were started into production in September, and there were 5,000 units in ending work in process that were 50% complete at the end of September.
What was the total amount of manufacturing costs assigned to the units in the ending work in process?
Explanation / Answer
Materials costs of $423,000 and conversion costs of $559,000 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 52,000 units were started into production in September, and there were 5,000 units in ending work in process that were 50% complete at the end of September.
What was the total amount of manufacturing costs assigned to the units in the ending work in process?
The total amount of manufacturing costs assigned to the units in the ending work in process = $ 68905.40
Calculation of Equivalent Unit Unit Direct Material Conversion Cost % of Completion Equivalent Unit % of Completion Equivalent Unit Unit Transferred Out 47000 100% 47000 100% 47000 Closing WIP 5000 100% 5000 50% 2500 Total Equivalent Unit 52000 49500 Calculation of Cost per Equivalent Unit Total Equivalent Unit Cost per Equivalent Unit Direct Material 423000 52000 $ 8.13 Conversion Cost 559000 49500 $ 11.29 Calculation of total Cost Cost of Unit Transferred Total Cost transferred out $ 913,094.60 Cost of Ending WIP Material Cost $ 40,673.08 Conversion Cost $ 28,232.32 Cost of Ending WIP $ 68,905.40