Answer:
Cost of goods transferred =$6,388,147.07
Cost of ending inventory=$1,068,478.93
Explanation:
Equivalent unit of material = (120,000× 100%)+(39,000×75%)=149250
Cost per unit of material = Total cost /Total equivalent unit
=(313,920 +2,956,500)/149250
=21.912
Cost per conversion cost
Equivalent unit of conversion cost
= (120,000
× 100%) + ((39,000×35%)= 133,650
Cost per unit of conversion cost
= ($3,737,220 + $449,040)/133,650 = 31.322
Cost of goods transferred = 120,000× (21.912 + 31.322)= 6,388,147.07
Cost of Inventory = (75%*39,000×21.912)+(35%× 39,000×31.322)
= 1,068,478.93
Cost of goods transferred =$6,388,147.07
Cost of ending inventory=$1,068,478.93
=
