Answer:
a. Materials = 206,000 units and Conversion costs = 196,040 units
b. Materials = $0.50 and Conversion costs = $2.65
c. Costs to units transferred out = $570,465 and Costs to units in process = $59,511
Explanation:
a. Calculation of Equivalent Units of Production for Materials and for Conversion costs
Units Completed and Transferred = Units in beginning work in process + Units started into production - Units in ending work in process
= 20,300 + 185,700 - 24,900
= 181,100
<u>Materials </u>
Units Completed and Transferred (181,100 × 100%) = 181,100
Units in Ending Work in Process (24,900 × 100%) = 24,900
Equivalent Units of Production = 206,000
<u>Conversion costs </u>
Units Completed and Transferred (181,100 × 100%) = 181,100
Units in Ending Work in Process (24,900 × 60%) = 14,940
Equivalent Units of Production = 196,040
b. Calculation of the unit costs of production.
Unit costs of production = Total Cost / Equivalent Units of Production
Materials = $103,000 / 206,000
= $0.50
Conversion costs = ($333,306 + $186,200) / 196,040
= $2.65
Total Unit Cost = $0.50 + $2.65
= $3.15
c. Assignment of costs to units transferred out and in process.
Costs to units transferred out = 181,100 × $3.15
= $570,465
Costs to units in process
Materials ($0.50 × 24,900) = $12,450
Conversion costs ($3.15 × 14,940) = $47,061
Total Cost = $59,511
