Question

Transferred-In Cost

Golding's finishing department had the following data for July:

	Transferred-In		Materials		Conversion
Units transferred out	60,000		60,000		60,000
Units in EWIP	13,000		11,000		9,000
Equivalent units	73,000		71,000		69,000
Costs:
Work in process, July 1:
Transferred-in from fabricating	$2,100
Materials	1,500
Conversion costs	3,000
Total	$6,600
Current costs:
Transferred-in from fabricating	$30,900
Materials	22,500
Conversion costs	45,300
Total	$98,700

Required:

1. Calculate unit costs for the following categories: transferred-in, materials, and conversion. Round your answers to the nearest cent.

Unit transferred-in cost	$
Unit materials cost	$
Unit conversion cost	$

2. Calculate total unit cost. Round your answer the nearest cent.
$

Answer 1

Solution

Unit transferred-in cost	$0.45
Unit materials cost	$0.34
Unit conversion cost	$0.70

Working

Cost per Equivalent Units
COST	Cost Transferred	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$     2,100.00	$       1,500.00	$         3,000.00	$               6,600.00
Cost incurred during period	$   30,900.00	$     22,500.00	$      45,300.00	$            98,700.00
Total Cost to be accounted for	$   33,000.00	$     24,000.00	$      48,300.00	$         1,05,300.00
Total Equivalent Units	73,000	71,000	69,000
Cost per Equivalent Units	$             0.45	$               0.34	$                 0.70

Requirement 2

Total Unit cost= $ 1.49

Total units cost= $0.45+0.34+0.70

.

Please leave a comment for any query