Answer:
Costs of goods transferred out is $ 785,840
Value of ending inventory is $26,268
Explanation:
The equivalent units of material cost is computed thus:
Completed units 17600*100% =17,600
Ending inventory 4,400*80% =3,520
Equivalent units 21,120
material unit cost =Accumulated materials cost/equivalent units
material unit cost=$45,408/21,120
=$2.15
Equivalent units of conversion cost is calculated thus:
Completed units 17,600*100%= 17,600
Ending inventory 4,400*10% = 440
Equivalent units 18,040
Conversion unit cost=Conversion costs/equivalent units
=$766,700/18,040
=$42.5
Cost of goods transferred out:
Material costs 17,600*100%*$2.15 =$37,840
Conversion costs 17,600*100%*$42.5 =$ 748,000
Total costs $ 785,840
Costs of ending inventory:
Material costs 4,400*80%*$2.15 =
$7,568
Conversion costs 4,400*10%*$42.5 =$18,700
Total cost $26,268
=
