In: Accounting
Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 43,900 Units in ending work in process 8,500 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $80,500 Direct labor $68,700 Overhead $103,800
Calculation of equivalent units of production | ||
Materials | Conversion | |
Beginning work in Process | - | - |
Unit Started in Production | 43,900.00 | 43,900.00 |
Units in Ending work in Process | 8,500.00 | 8,500.00 |
No. of units completed and transferred out | 35,400.00 | 35,400.00 |
Percentage completion | 100% | 40% |
Percentage to Ending Work in Process | 8,500.00 | 3,400.00 |
Total equivalent units in production | 43,900.00 | 38,800.00 |
Unit cost of Direct materials= 80,500/43,900
1.83 Per unit
Unit cost of Conversion = (68,700+103,800)/38,800
=4.45 Per unit