Question

Need answers in clear hand writing notes. If you can then attempt my questions other wise don't attempt my questions.

Anna Company has gathered the following information

Units in beginning work in process                          25,000

Units started into production                                  115,000

Units in ending work in process                               30,000

Percent complete for conversion costs in

ending work in process                                            40%

Costs incurred:

Direct materials                                                $175,000

Direct labor                                                      $235,400

Overhead                                                         $191,600

Materials are added at the beginning of the process.

Instructions

(a)     Compute equivalent units of production for materials and for conversion costs.

(b)     Determine the unit costs of production.

(c)   Show the assignment of costs to units transferred out and in process

Answer 1

Ans a)

Inventory Transferred = Units in beginning work + Units started into production - Units in ending work in process

                               

Ans b)

Total Cost of production = Sum of Material Cost + Conversion Cost

Ans c)

Assignment of costs to units transferred out and in process :

Here assignment of costs to units in process are Material Cost and Conversion cost