Question

Production Beg investory 1,600 unit are 100% completed as to Mar 1 and 20% complete as conversion cost. During the period there is an additional 11,000 units started. End inventory is 2,000 unit. There 10% conversions cost. Beginning inventory costs comprised of 20,000 of Material and 43,180 of conversions costs. Additional material cost added in during the month 162700. Labor applied to WIP during the months is 100,080 and MFG. O.H. is 250940

A). Compote the equivalents units of production for material and conversions cost for month of June.

B).Computed the unit cost for material and conversion cost for month.

C). Determine the cost to be assigned to the unit transfer out and in process.

Answer 1

Answer A
Calculation of equivalent units of production for material and conversion cost for month of June (using weighted average method)
	Physical Units	% complete with respect to Material cost	Equivalent units for Material cost	% complete with respect to Conversion cost	Equivalent units for Conversion cost
Units completed and transferred	10600	100%	10600	100%	10600
Units in ending Inventory	2000	100%	2000	10%	200
Equivalent Units			12600		10800
Answer B
Computation of unit cost for material and conversion cost for month
		Material	Conversion
Beginning Inventory		$20,000.00	$43,180.00
Cost added during June		$162,700.00	$351,020.00
Total cost to account for		$182,700.00	$394,200.00
/ Equivalent Units		12600	10800
Unit cost		$14.50	$36.50
Answer C
Determination of cost assigned to unit transferred and in process
Cost assigned units transferred
- Material cost [$14.50 x 10600]	$153,700.00
- Conversion cost [$36.50 x 10600]	$386,900.00
Cost assigned units transferred	$540,600.00
Cost assigned units in process
- Material cost [$14.50 x 2000]	$29,000.00
- Conversion cost [$36.50 x 200]	$7,300.00
Cost assigned units in process	$36,300.00
Working
Calculation of physical units transferred during June
Beginning Inventory	1600
Add : Units started	11000
Less : Ending Inventory	2000
Units completed and transferred	10600