2nd midtem The nexu twe questions are based on the follow in

2nd midtem The nexu twe questions are based on the follow ing uses system. For the company\'s first processing departiment, the June I work in process inventory consisted of 24,600 units with $45.600 in materials cost and S 7,800 in conversion cosme June1 work in process tventory was 40% complete wit \'respect to maenalsand 30% complete with respect to conversion During June, 20,800 units were started into production and $45,744 in materials cost and $37,592 in conversion cost were added in the month. The June 30 inventory consisted of 19,400 units that were 80% complete with respect to materials and 60% complete with respect to conversion. aok oog431i nventony. added Mo 137s92 Compute the departiment\'s cost of ending.working process inventory. a 6.736 5 32.592 C 34144 D. S196,736 E. None of the above. WIP June 1 24600 60o 60o 307. Completed 40? endi,jlquoo 80% gool 60%, 2 Compute the department\'s cost of units transferned out to the next department. 57.200 130.000 5 5 388,436 D. 5 72,800 E. None of the above. at per unit Cost PrtScn Home End 4

Solution

Basic calculations before answering the questions

Question - 1 .... Cost of ending working process Inventory

So .......... select - Option - A

Question - 2

Cost of Units Transfered out = 26000 Units * ( 2.2 + 2.8) = 130000 ...........Option - B

	Materials	Conversion cost
	Units	%	Units	%
Ending WIP = 19400	15520	80	11640	60
Units finished and transferred
= 24600+20800 - 19400 = 26000	26000	100	26000	100
Equivalent Units	41520		37640
Cost
Beginning Inventory	45600		67800
Started into production	45744		37592
Total cost	91344		105392
Cost per EU = Total cost / EU	2.2		2.8