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Butoxors [25]
3 years ago
5

The ending inventory has 83,000 units, which are 100 percent complete for Department R costs. Required: a. Assume that Saline So

lutions used weighted-average process costing and that the cost per equivalent unit for May for materials in Department S is $6.40 and for conversion costs it is $2.40. Prepare a production cost report for Saline Solutions' Department S for the month of May. b. What is the cost of product transferred out of Department S for May
Business
1 answer:
natima [27]3 years ago
4 0

Answer:

Total unit cost                                   $8.80

Total Costs  Transferred out          $730,400  

Explanation:

In Process Costing we find the individual unit costs and total costs transferred by multiplying it with the equivalent no of units.

As the units are 100 percent complete the Equivalent units are 83,000 units for both materials and conversion.

Saline Solutions

Weighted-Average Process

Materials in Department S             $6.40

<u>Conversion costs Department S     $2.40</u>

<u>Total unit cost                                   $8.80</u>

Total No of units 83,000

<u>Total Costs           $8.80</u>

<u>Total Cost  Transferred Out         $730,400  </u>

<u />

Total Costs Transferred to Materials = $ 6.4 * 83,000=$ 531200

Total Costs Transferred to Conversion = $ 2.4 * 83,000=$ 199200

Total Costs Transferred= $ 531200+$ 199200= $ 730400

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