Question

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 1,520 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 41,300; ending inventory of 7,400 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $21,600 of materials and $12,320 of conversion costs; materials costs added in Polishing during the month, $181,795; labor and overhead applied in Polishing during the month, $127,700 and $257,740, respectively.

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

b)Compute the unit costs for materials and conversion costs for the month.

c)Determine the costs to be assigned to the units transferred out and in process. Ending work in process and transferred out.

Answer 1