a Materials Conversion Costs SHOW SOLUTION LINK TO TEXT b Ma

(a)

Materials

Conversion Costs

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(b)

Materials

Conversion Costs

SHOW SOLUTION

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(c)

The Blending Department of Luongo Company has the following cost and production data for the month of April. Costs:    Work in process, April 1       Direct materials: 100% complete $109,000       Conversion costs: 20% complete 76,300          Cost of work in process, April 1 $185,300    Costs incurred during production in April       Direct materials $872,000       Conversion costs 397,850          Costs incurred in April $1,269,850 Units transferred out totaled 18,530. Ending work in process was 1,090 units that are 100% complete as to materials and 40% complete as to conversion costs.

Solution

a. Materials Conversion Costs The equivalent units of production                       19,620                           18,966 Working: Direct Materials Conversion Costs Physical units % Equivalent Units % Equivalent Units Units completed                       18,530 100%                     18,530 100%                     18,530 Ending Units                          1,090 100%                        1,090 40%                           436 Total                     19,620                     18,966 b. Direct Materials Conversion Unit Costs $ 50 $ 25 Working: Direct Materials Conversion Beginning Work in process $                   1,09,000 $                 76,300 Cost incurred during the period $                   8,72,000 $             3,97,850 Total costs $                   9,81,000 $             4,74,150 ÷ Equivalent Units                           19,620                     18,966 Unit Costs $                               50 $                         25 c. Total Costs Transferred out $13,89,750 Ending Work in process $ 65,400 Working: Equivalent Units Unit Costs Total Costs Total Costs Units completed: Direct Material                       18,530 $                               50 $             9,26,500 Conversion Costs                       18,530 $                               25 $             4,63,250 $           13,89,750 Ending Units: Direct Material                          1,090 $                               50 $                 54,500 Conversion Costs                             436 $                               25 $                 10,900 $                 65,400