Answer:
<em>Total units transferred out: 2,375,864.5</em>
<em>Materials Cost per equivalent unit: 3.3</em>
<em>Conversion Cost per equivalent unit: 2.45</em>
Explanation:
Equivalent units = started and completed + incomplete beginning + complete ending
beginning WIP 81,000 x (1 - 65%) = 28,350
started and completed 324,000
ending WIP 103000 x 0.8 =<u> 82,400</u>
<em>Total equivalent units (materials): 434,750</em>
<em>Materials Cost per equivalent unit: 1,434,670 / 434,750 = 3.3</em>
<em />
beginning WIP 81,000 x (1 - 35%) = 53,650
started and completed 324,000
ending WIP 103000 x 0.3 = <u> 30,900</u>
<em>Total equivalent units (conversion): 408,550</em>
<em>Conversion Cost per equivalent unit: 1,002,573 / 408,550 = 2.45</em>
<em />
Cost of units transferred out:
beginning inventory: 28,350 x 3.3 + 53,650 x 2.45 + 287,867 = 512,864.5
started and complete: 324,0000 x (3.3 + 2.45) = 1,863,000
<em>Total units transferred out: 2,375,864.5</em>