The Blending Department of Luongo Company has the following

The Blending Department of Luongo Company has the following cost and production data for the month of April Costs: Work in process, April 1 $105,000 73,500 $178,500 Direct materials: 100% complete conversion costs: 20% complete Cost of work in process, April 1 Costs incurred during production in April $840,000 383,250 $1,223,250 Direct materials Conversion costs Costs incurred in April Units transferred out totaled 17,850. Ending work in process was 1,050 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April Materials Conversion Costs The equivalent units of production Compute the unit costs for the month. (Round unit costs to O decimal places, e.g. 25.) Materials Conversion Costs Unit costs

Solution

Equivalent unit of production :

Calculate unit cost :

Cost assigned :

Transferred out = (50+25)*17850 = 1338750

Ending work in process = (1050*50+420*25) = 63000

	material	Conversion cost
Unit transferred out	17850	17850
Ending work in process	1050	1050*40% =
Equivalent unit of production	18900	18270