Question

At Hodgson​ Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details​ include: Beginning WIP direct materials ​$35,000 Beginning WIP conversion costs ​$29,250 Costs of materials added ​$389,100 Costs of conversion added ​$275,125 WIP beginning​ (50% for​ conversion) ​21,200 units Units started ​127,500 units Units completed and transferred out ​110,700 units WIP ending​ (60% for​ conversion) ​38,000 units What is the total cost of units remaining in ending​ WIP?

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				21,200
Add: Units Started in Process				127,500
Total Units to account for:				148,700
UNITS TO BE ACCOUNTED FOR:
Units started and completed				110,700
Ending Work in Process				38,000
Total Units to be accounted for:				148,700
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units started and completed			100%	110,700	100%	110,700
Ending Work in Process			100%	38,000	60%	22,800
Total Equivalent units				148,700		133,500
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Beginning work in Process			35,000		29,250
Cost Added during May			389,100		275,125
Total Cost to account for:			424,100		304,375
Total Cost to account for:					728,475
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			424,100		304,375
Equivalent Units			148,700		133,500
Cost per Equivalent unit			2.85		2.28
TOTAL COST ACCOUNTED FOR:
Ending Work in process (38,000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			38,000	2.85	108300
Conversison Cost			22,800	2.28	51984
Total cost of Ending Work in process:					160,284
Answer is $ 160284