Charke Chaers Inc., manufactares placöc moidings for cosis are alccaled evenly t

Question

Charke Chaers Inc., manufactares placöc moidings for cosis are alccaled evenly throughout producson car seats Its costng syslem unices two cost ategones, dect matserials and conmversion costs Each product must pass through Department A and Dspartmert Bt.Convers Data for Dpartment A for Fetuary 2017 ae 500% compleetor Wiork in process, materals. 25% completo for comerson Unts started duting Feeruary work n process, ordn9 merury 40% rompene for matanas 10% complete tr torvarsin 400unts 1.000 unts 250 units Costs for Department A for Feoruary 2017 e Work in process beginning invetory

Explanation / Answer

Physical units Materials Conversion Beginning work in process 400 200 300 Units started and completed 750 750 750 Ending work in process 250 100 25 Equivalent units 1400 1050 1075 Materials Conversion Current costss 10500 43000 Equivalent units 1050 1075 Cost per Equivalent unit 10 40 Beginning work in process costs 22000 Costs to complete Beginning work in process 14000 =(200*10)+(300*40) Cost of Units started and completed 37500 =750*(10+40) Total cost of units completed and transferred 73500 Option C is correct

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