Answer:
The cost of the units transferred out and remaining in ending inventory is $ 107,250 and $ 4,000 respectively.
Explanation:
<u>Calculation of total cost of units transferred out</u>
Units transferred out = 750+ 9500- 500 = 9,750 units
Total cost per unit = material cost per unit + conversion cost
= 7 + 4
= $11
Units transferred out = 11 * 9750 = $ 107,250
<u>Calculation of total cost of closing units</u>
Total Material cost = 7 * (500) = 2,500
Total Coversion Cost = 4 * (500*75%) = 1,500
Total cost = $ 4,000
