CSecure https Help SaveExit Submit Chapter 4 Qui Mulins Corp

CSecure https Help Save&Exit; Submit Chapter 4 Qui Mulins Corporation unes the FiIFO method In its process costing system. Deta concerning the frst processdepartment for the most recent month are listed below Beginning work in process inventory Unita in beginning vork in process inventocy Materiala eoat Conversion costa Percent complete with respect to saterials Percent eomplete with respect to conversion 1,150 s 12,400 22,650 758 taits started into production during the sonth Dnits transterred to the next departnent during the sonth Katerials costs added during the month Conversion costs added during the month Ending work in, process inventory 9,500 8,700 $168,300 357,500 Units in end sng vork in process inventory Percent complete with respect to naterials Percent complete with respeot to conversion 1,950 65t The cost of a completed unit transferred out of the department is closest to: (Round equivalent units to the nearest whole number and round all o r intermediate calculations to 2 decimal places. C Prev 10 of 10 Next MacBook Pro 30

Solution

$ 58.52

Working:

Step-1:Calculation of Equivalent units:
				Physical Units	Materials		Conversion
						% of completion	Equivalent Units	% of completion	Equivalent Units
Beginning Work in process		1,150		25%	288	35%	403
Units started and comleted		7,550		100%	7,550	100%	7,550
Units started and in process at the end	1,950		65%	1,268	50%	975
Total				10,650			9,105		8,928
Sep-2:Calculation of cost per equivalent unit
						Materials		Convesion	Total
Costs Incurred during this period				$         1,68,300		$       3,57,500
/ Equivalent units of production in current period		9,105		8,928
Cost per Equivalent units of production(EUP)		$ 18.48		$ 40.04	$ 58.53
Thus,
Costs of a completed unit tranfered out is	$      58.53
Difference in answer is due to rounding off difference.