Q2 correct full answer please Exercise 311 The Polishing D

Exercise 3-11 The Polishing Department of Major Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 44,700; ending inventory of 7,800 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,200 of materials and $15,530 of conversion costs; materials costs added in Polishing during the month,$224,264; labor and overhead applied in Polishing during the month, $126,100 and $258,240, respectively Compute the equivalent units of production for materials and conversion costs for the month of September. Materials Conversion Costs The equivalent units of production LINK TO TEXT VIDEO: APPLIED SKILLS Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25) Materials Conversion Costs Unit costs

Solution

Q-1) Equivalent units

Materials Conversion cost

units completed and transferred out 38500 38500

Ending work in process - 780

Equivalent units of production 38500 39280

Note:- Beginning work in process + unit started in = units completed and transferred out + ending work in process

1600 + 44700 = units completed and transferred out + 7800

38500 = units completed and transferred out

b.    Materials Conversion cost

beginning work in process cost $20200 $15530

Cost incurred during the month 224264 $384340

Total cost to account for $244464 $399870

Equivalent units 38500         39280

Unit cost    $6.35 $10.18   

3. Units Transferred out cost = 38500 units * ( $6.35 + $10.18 )

   =38500 units * $16.53

= $636405

   Ending inventory cost = 780 units * $10.18

= $7940