Question

The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $2.40 and $2.65, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		3,400
Started and completed during the period	49,000		49,000
Transferred out of Filling (completed)	49,000		52,400
Inventory in process, end of period	4,000		2,000
Total units to be assigned costs	53,000		54,400

The beginning work in process inventory had a cost of $2,070. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production	$
Inventory in process, ending	$

Answer 1

Statement of Equivalent Units
Particulars	Material	Conversion
	EOU	EOU
Units Completed & Trfd. :-
From Opening	0	3400
From Current	49000	49000
Closing Stock	4000	2000
Total	53000	54400
Statement of Equivalent Cost Per Unit
Particulars	Material ($)	Conversion ($)
Given	$2.40	$2.65
Cost per Equivalent Unit	$2.40	$2.65
Statement of Evalution
Particulars	Amount ($)
Opening Stock WIP
- Cost Incurred Previous Period	$2,070
- Current Cost Incurred :-
Direct Material    [         Nil         ]	-
Conversion Cost [3,400 x $ 2.65 ]	$9,010
Total                                                     [A]	$11,080
Units Completed & Trfd.
Direct Material    [49,000 x $ 2.40]	$117,600
Conversion Cost [49,000 x $ 2.65]	$129,850
Total                                                     [B]	$247,450
Total Cost of FG Units Completed & Trfd.                                           [A + B]	$258,530
Closing Stock WIP
Direct Material     [4,000 x $ 2.40]	$9,600
Conversion Cost [2,000 x $ 2.65]	$5,300
Total Cost of Closing WIP Units]	$14,900