Answer:
c. $10,106 if taken separately for Direct Material or Conversion Costs
Or None of these as total cost is $ 10,779+$ 10,081= $20860 for units transferred out
Explanation:
Units % of Eq. Units
Completion D.M Conversion
Units completed and
transferred out 6,400 units 100% 6400 6400
WIP Inventory, 3,100 units 90%,60% 2790 1860
December 31
<u>Total Units to account for 9190 8260</u>
Direct materials $15,478
Direct labor $7,400
Manufacturing Overhead $5,611
Direct Material Cost per unit= $ 15478/9190= $ 1.684
Conversion Cost per unit= $13011 / 8260= 1.575=$ 1.58
Direct Material Cost for Completed units = 6400 * $1.684= $ 10,779
Conversion Cost for Completed units = 6400 *1.575= $ 10,081
