Exercise 1611 Part Level Submission The Polishing Department

Exercise 16-11 (Part Level Submission)

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 1,680 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 47,000; ending inventory of 5,700 units 10% complete as to conversion costs.

Manufacturing costs: Beginning inventory costs, comprised of $21,700 of materials and $76,790 of conversion costs; materials costs added in Polishing during the month, $235,817; labor and overhead applied in Polishing during the month, $127,100 and $257,740, respectively.

(a)

Materials

Conversion Costs

Open Show Work

SHOW SOLUTION

SHOW ANSWER

LINK TO TEXT

(b)

Materials

Conversion Costs

Exercise 16-11 (Part Level Submission) 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 1,680 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 47,000; ending inventory of 5,700 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $21,700 of materials and $76,790 of conversion costs; materials costs added in Polishing during the month, $235,817; labor and overhead applied in Polishing during the month, $127,100 and $257,740, respectively.

Solution

a) Equivalent unit of production :

Calculate unit cost ;