In its 21 Work in process beginning Units in process Percent

In its 21 Work in process, beginning Units in process Percent complete with respect to materials Percent complete with respect to conversion 4e0 9ex 48% Costs in the beginning inventory s 756 s 4,448 Conversion cost Units started into production during the month Units completed and transferred out 13,000 13,eee Costs added to production during the month: Materials cost Conversion cost s 29,949 $362,127 Work in process, ending 1ee Units in process Percent complete with respect to materials Percent complete with respect to conversion method

Solution

a. Equivalent unit of for material:

units percentage completion equivalent units

units completed and Transferred out 13300 100% 13300

Ending work in process 100 50% 50   

      13350

Equivalent units for conversion:

units percentage completion equivalent units

units completed and Transferred out 13300 100% 13300

Ending work in process 100 30%    30   

      13330

b. Material Conversion cost

Beginning work in process Cost $756 $4448

Add: Cost incurred during the month $29949    $362127   

Total cost $30705 $366575

Equivalent units    13350    13330

Cost per equivalent units $2.3 $27.5

c. Cost of units transferred out = 13300 units * ($2.3 + $27.5)

= 13300 * $29.8

= $396340

d. Cost of ending work in process = [50 * $2.3] + [30 * $27.5]

= $115 + $825

= $940