The Polishing Department of Major Company has the following

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 1,510 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 46,300; ending inventory of 6,800 units 10% complete as to conversion costs.

Manufacturing costs: Beginning inventory costs, comprised of $20,500 of materials and $35,378 of conversion costs; materials costs added in Polishing during the month, $205,163; labor and overhead applied in Polishing during the month, $126,100 and $258,340, respectively.

Materials

Conversion Costs

Materials

Conversion Costs

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 1,510 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 46,300; ending inventory of 6,800 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,500 of materials and $35,378 of conversion costs; materials costs added in Polishing during the month, $205,163; labor and overhead applied in Polishing during the month, $126,100 and $258,340, respectively.

Solution

1 FIFO method Beggining units 1510 Transferred out 41,010 Started into production 46300 Ending units 6,800 47810 47810 Equivalent units Material Conversion Beginning units 1510 1510 Completion in current period 0% 70% A 0 1057 Units started and completed 39500 39500 Completion 100% 100% B 39500 39500 Ending Units 6,800 6,800 Completion 100% 10% C 6800 680 Total units A+B+C 46300 41237 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 205163 46300 4.43 Conversion cost 384440 41237 9.32 589603 13.75 Cost of goods sold Material convertion cost Beginning inventory completed Completion 0% 70% Per unit cost 4.43 9.32 Units 1510 1510 Total cost   A 0.00 9854 9854 Units started and completed Completion 100% 100% Per unit cost 4.43 9.32 Units 39500 39500 Total cost    B 175031 368246 543278 Beginning work in progress C 20500 35378 55878 Total cost A+B+C 609010 Ending work in progress Completion 100% 10% Per unit cost 4.43 9.32 Units 6,800 6,800 Total cost     30132 6339 36471 Total cost accounted for 645481