Do It Review 164 In March Kelly Company had the following un

Do It! Review 16-4 In March, Kelly Company had the following unit production costs: materials $10 and conversion costs $8. On March 1, it had no work in process. During March, Kelly transferred out 22,000 units. As of March 31, 4,000 units that were 40% complete as to conversion costs and 100% complete as to materials were in ending work in process. Your answer is correct. Compute the total units to be accounted for. Total units Show Solution Show Answer Link to Text Your answer is incorrect. Try again. Compute the equivalent units of production. Materials Conversion costs The equivalent units of production Link to Text Your answer is incorrect. Try again. Prepare a cost reconciliation schedule, including the costs of materials transferred out and the costs of materials in process. Cost Reconciliation Schedule Costs accounted for    Transferred out $    Work in process, March 31       Materials $       Conversion costs Total costs $

Solution

Equivalent Units of Production Units Transferred 22000 Units in Work in Progress 2800 Equivalent Units of Production 24800 Since Materials are done and Conversion Cost Completed 40%.Hence on an Average it has completed 70% ,therefore Work in Progress is 4000*70% Cost of Materials Transferred out Materials Transferred 22000 units a)Material Cost 10 b)Convertion Costs 8 c) Total Direct cost(a+b) 18 Cost of Materials Transferred out 396000 Cost of Work in Progress % of Completion(1) Units(2) Cost(3) Total cost(1*2*3) a)Material Cost 100% 4000 10 40000 b)Convertion Costs 40% 4000 8 12800 Cost of Work in Progress 52800