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Goryan [66]
3 years ago
14

The Mixing Department of Complete Foods had 62,000 equivalent units of materials for October. Of the 62,000 ​units, 38,000 units

were completed and transferred to the next​ department, and 24,000 units were 20​% complete. Complete Foods's costs per equivalent unit of production are $ 0.75 for direct materials and $ 0.55 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the​ weighted-average method.
Business
1 answer:
Art [367]3 years ago
6 0

Answer:

Materials

62,000 equivalent units

Conversion

42,800 Equivalent untis

Cost of finished Goods

38,000 x (.75 + .55) = 38,000 x 1.3 = $49,400

WIP

24,000 x .75 = 18,000

4,800 x .55 =    2,640

Total WIP         20,640

Explanation:

Equivalent Units

38,000 complete

20% of 24,000 WIP  = 4,800

Equivalent Units CC = 42,800

x .55 CC = 23540

Materials

62,000 x .75 = $46,500

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