In: Accounting

# The Blending Department of Luongo Company has the following cost and production data for the month...

The Blending Department of Luongo Company has the following cost and production data for the month of April.

 Costs: Work in process, April 1 Direct materials: 100% complete $122,000 Conversion costs: 20% complete 85,400 Cost of work in process, April 1$ 207,400 Costs incurred during production in April Direct materials $976,000 Conversion costs 445,300 Costs incurred in April$ 1,421,300

Units transferred out totaled  20,740. Ending work in process was  1,220 units that are 100% complete as to materials and 40% complete as to conversion costs.

(a)

Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April.

 Materials Conversion Costs The equivalent units of production

(b) Compute the unit costs for the month. (Round unit costs to 0 decimal places, e.g. $25.) Unit cost for the month (c) Determine the costs to be assigned to the units transferred out and in ending work in process. Transferred out$
Work in process
Materials$Conversion costs Total costs$

## Solutions

##### Expert Solution

Requirement a

 Material Conversion Equivalent Units of Production 21,960 21,228

Requirement b

 Material Conversion Cost per equivalent Unit $50.00$ 25.00

Requirement C

 Material Conversion Total Units Completed $10,37,000$         5,18,500 $15,55,500 Ending Inventory$             61,000 $12,200$              73,200

Working

 Statement of Equivalent Units Material Conversion Cost Units Complete % Equivalent units Complete % Equivalent units Transferred 20,740 100% 20,740 100% 20,740 Closing WIP 1,220 100% 1,220 40% 488 Total 21,960 Total 21,960 Total 21,228
 Cost per Equivalent Units COST Material Conversion Cost TOTAL Beginning WIP Inventory Cost $1,22,000$              85,400 $2,07,400 Cost incurred during period$         9,76,000 $4,45,300$      14,21,300 Total Cost to be accounted for $10,98,000$          5,30,700 $16,28,700 Total Equivalent Units 21,960 21,228 Cost per Equivalent Units$               50.00 $25.00  Statement of cost Cost Equivalent Cost/unit Ending WIP Transferred Units Cost Allocated Units Cost Allocated Material$               50.00 1,220 $61,000$            20,740 $10,37,000 Conversion Cost$               25.00 488 $12,200$            20,740 $5,18,500 TOTAL$       16,28,700 TOTAL $73,200 TOTAL$       15,55,500

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