Question

In: Accounting

Materials costs of $1,200,000 and conversion costs of $1,530,000 were charged to a processing department in...

Materials costs of $1,200,000 and conversion costs of $1,530,000 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 20,000 units were started into production in September, and there were 5,000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?

Solutions

Expert Solution

Solution:

Computation of Equivalent unit of Production
Particulars Physical Units Material Conversion
Unit completed & Transferred out 15000 15000 15000
Closing WIP: 5000
Material (100%) 5000
Conversion (40%) 2000
Equivalent units of production 20000 20000 17000
Computation of Cost per equivalent unit of Production
Particulars Material Conversion
Opening WIP $0.00 $0.00
Cost Added during September $1,200,000.00 $1,530,000.00
Total cost to be accounted for $1,200,000.00 $1,530,000.00
Equivalent units of production 20000 17000
Cost per Equivalent unit $60.00 $90.00
Computation of Cost of ending WIP and units completed & transferred out - Weighted Average
Particulars Material Conversion Total
Equivalent unit of Ending WIP 5000 2000
Cost per equivalent unit $60.00 $90.00
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit) $300,000 $180,000 $480,000
Units completed and transferred 15000 15000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit) $900,000 $1,350,000 $2,250,000

Total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September = $2,250,000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Materials costs of $572000 and conversion costs of $736270 were charged to a processing department in...
Materials costs of $572000 and conversion costs of $736270 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 110000 units were started into production in September, and there were 9000 units in ending work in process that were 30% complete at the end of September. What was the total amount of...
Materials costs of $1121000 and conversion costs of $1269600 were charged to a processing department in...
Materials costs of $1121000 and conversion costs of $1269600 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 190000 units were started into production in September, and there were 10000 units in ending work in process that were 40% complete at the end of September. What was the total amount of...
Materials costs of $969000 and conversion costs of $1372500 were charged to a processing department in...
Materials costs of $969000 and conversion costs of $1372500 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 190000 units were started into production in September, and there were 10000 units in ending work in process that were 30% complete at the end of September. What was the total amount of...
Materials costs of $202000 and conversion costs of $269710 were charged to a processing department in...
Materials costs of $202000 and conversion costs of $269710 were charged to a processing department in the month of September. Materials are added at the beginning of the process; conversion costs are incurred uniformly throughout the process. There were no units in beginning Work in Process, 101000 units were started into production in September, and there were 8500 units in ending Work in Process that were 45% complete at the end of September. What was the total amount of manufacturing...
Materials costs of $408000 and conversion costs of $360510 were charged to a processing department in...
Materials costs of $408000 and conversion costs of $360510 were charged to a processing department in the month of September. Materials are added at the beginning of the process; conversion costs are incurred uniformly throughout the process. There were no units in beginning Work in Process, 102000 units were started into production in September, and there were 8300 units in ending Work in Process that were 45% complete at the end of September. What was the total amount of manufacturing...
13. Materials costs of $638000 and conversion costs of $710700 were charged to a processing department...
13. Materials costs of $638000 and conversion costs of $710700 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 110000 units were started into production in September, and there were 10000 units in ending work in process that were 30% complete at the end of September. What was the total amount...
The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve...
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...
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout...
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of May, there was no beginning Work in Process; 46400 units were completed and transferred out; and there were 13700 units in the ending Work in Process that were 20% complete. During May, $162270 materials costs and $98280 conversion costs were charged to the department. How much are unit production costs for materials and conversion costs for May if...
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout...
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 39700 units were completed and transferred out; and there were 20000 units in the ending work in process that were 30% complete. During July, $202980 materials costs and $173660 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July were Materials Conversion...
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout...
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of May, there was no beginning Work in Process; 45000 units were completed and transferred out; and there were 13000 units in the ending Work in Process that were 5% complete. During May, $63800 materials costs and $54780 conversion costs were charged to the department. How much are unit production costs for materials and conversion costs for May if...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT