Answer:
transferred-out: $ 300,000
ending inventory $ 12,000
Explanation:
Stareted: 150,000 gallons
Completed: (120,000) gallons
Ending WIP 30,000 gallons
Ending WIP: 16% complete
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<u>Cost: </u>
materials 137,000
conversion cost 175,000
Total cost: 312,000
We aren't given with an indicator about the 16% is for materials or conversion, so we assume is fro both cost.
<u>Equivalent units:</u> 120,000 complete + 30,000 x 16% = 124,800
Cost per equivalent unit: $312,000 / 124,800 = $2.5 per unit
transferred-out: 120,000 gallon x $ 2.5 per gallon = $300,000
ending inventory 30,000 gallon x 16% completion x $ 2.5 per gallon = $12,000
