Exercise 16-11 (Part Level Submission) The Polishing Department of Major Company has the following production and...

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 1,730 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 46,900; ending inventory of 7,700 units 10% complete as to conversion costs.

Manufacturing costs: Beginning inventory costs, comprised of $22,100 of materials and $38,332 of conversion costs; materials costs added in Polishing during the month, $220,077; labor and overhead applied in Polishing during the month, $127,100 and $258,240, respectively.

a. Compute the equivalent units of production for materials and conversion costs for the month of September.

The equivalent units of production

Materials:_________

Conversion Costs:_________

B.Compute the unit costs for materials and conversion costs for the month.

Cost per equivalent unit of material :

C.Determine the costs to be assigned to the units transferred out and in process.

Cost of units transferred out:

Solutions

Expert Solution

Since method was not specified, i have used weighted average method, if other method is required, kindly comment.

	Units	% Material	EUP-Material	% Conversion	EUP-Conversion
Units completed and transferred out	40930	100%	40930	100%	40930
Units of ending work in process	7700	100%	7700	10%	770
Total Equivalent units	48630		48630		41700

Cost per Equivalent unit of Production		Direct Material	Conversion
Cost of beginning work in process	$ 60,432	$ 22,100	$ 38,332
Costs incurred this period	$ 605,417	$ 220,077	$ 385,340
Total Costs	$ 665,849	$ 242,177	$ 423,672
Equivalent units of Production		48630	41700
Cost per Equivalent unit of Production		$ 4.98	$ 10.16

Costs transferred out	EUP	Cost per EUP	Total Cost
Direct Material	40930	$ 4.98	$ 203,831
Conversion	40930	$ 10.16	$ 415,849
Total Transferred out			$ 619,680

Cost of Ending Work in Process	EUP	Cost per EUP	Total Cost
Direct Material	7700	$ 4.98	$ 38,346
Conversion	770	$ 10.16	$ 7,823
Total Cost of Ending Work in Process			$ 46,169

ekkarill92 answered 2 months ago

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