Question

1.Waterway Company had the following department information for the month: Total materials costs $52000 Equivalent units of production - materials 10000 Total conversion costs $99000 Equivalent units of production - conversion costs 25000 What is the total manufacturing cost per unit?

2.Vaughn Industries has 8100 equivalent units of production for both materials and for conversion costs. Total manufacturing costs are $140930. Total materials costs are $98000. How much is the conversion cost per unit?

3. Bonita Industrieshas beginning and ending work in process inventories of $160000 and $175000 respectively. If total manufacturing costs are $680000, what is the total cost of goods manufactured?

Answer 1

1)	Total manufacturing cost per unit				$      9.16
Working:
			Material		Conversion		Total
Total costs			$   52,000		$   99,000
÷ Equivalent units of production			10,000		25,000
Cost per unit			$      5.20		$      3.96		$    9.16
2)	Conversion cost per unit			$      5.30
Working:
Total manufacturing cost				$1,40,930
Less:Total material costs				$   98,000
Total conversion costs				$   42,930
÷ Equivalent units of production				8,100
Cost per equivalent units				$      5.30
3)	Total costs of goods manufactured			$6,65,000
Working:
Beginning work in process				$1,60,000
Add:Total manufacturing costs				$6,80,000
Less:Ending work in process				$1,75,000
Total costs of goods manufactured				$6,65,000
Note:It is assumed that given total manufacturing costs is for this year.
Alternatively if given manufacturing costs is total manufacturing costs including beginning work in process then
Total manufacturing costs				$6,80,000
Less:Ending work in process				$1,75,000
Total costs of goods manufactured				$5,05,000