In: Accounting
Campbell Company had 400 units of product in work in process inventory at the beginning of the period. It started 1,300 units during the period and transferred 1,100 units to finished goods inventory. The ending work in process inventory was estimated to be 60 percent complete. Cost data for the period follow:
Product Costs | |||
Beginning balance | $ | 37,560 | |
Added during period | 58,800 | ||
Total | $ | 96,360 | |
Required
Calculate the number of equivalent units of production.
Calculate the product cost per equivalent unit.
Calculate the total cost allocated between ending work in process inventory and finished goods inventory.
The equivalent units of production : 1,620 units.
Cost per equivalent unit : $59.48
Explanation to this question is given below in form of an image.
The total cost allocated between ending work in process inventory and finished goods inventory is :
Ending work in progress inventory is 200units x cost per unit $59.48 = $11896
Finished goods inventory is 1,100units + 400units x cost per unit $59.48 = $89,220
Cost of actual Closing inventory as equivalent unit is 120units x $59.48 = $7138