Materials Conversion Costs Materials Conversion Costs Baden

Materials

Conversion Costs

Materials

Conversion Costs

Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 43,300 Units in ending work in process 7,300 Percent complete in ending work in process:     Conversion costs 40 %     Materials 100 % Costs incurred:     Direct materials $80,800     Direct labor $66,800     Overhead $105,900

Solution

Compute equivalent units of production for materials and for conversion costs.

Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)

Calculate cost :

Unit transferred out = (1.87+4.44)*36000 = 227160

Unit in ending work in process = (1.87*7300+4.44*2920) = 26616