Materials costs of 1121000 and conversion costs of 1269600 w

Materials costs of $1121000 and conversion costs of $1269600 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, 190000 units were started into production in September, and there were 10000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to the 10000 units in the ending work in process?

Solution

Physical flow Equivalent units Materials Conversion costs Beginning WIP $                     -   Started into production $         190,000 Units to be accounted for $         190,000 Completed and transferred $         180,000 $     180,000 $       180,000 Ending WIP $           10,000 $        10,000 $            4,000 Units accounted for $         190,000 $     190,000 $       184,000 Total Costs incurred $ 1,121,000 $    1,269,600 $ 2,390,600 Cost per equivalent unit $            5.90 $              6.90 COSTS ASSIGNED TO ENDING WIP = $59000 $27600 $86600