Answer:
(a) Total units for January = 14,200
Total units for May = 23,260
(b). Conversion cost for :
January = 13,053
March = 13,660
May = 21,688
July = 11,212
Explanation:
As per the data given in the question,
1)
Jan. May
Units to be accounted for
Beginning WIP 0 0
Started into production 14,200 23,260
Total number units 14,200 23,260
Units accounted for
Transferred out 11,100 15,400
Ending WIP 3,100 7,860
Total units 14200 15400
2)
We can calculate the conversion cost by using following formula:
Conversion cost = Transferred out unit + (Work in process unit × conversion cost)
Material Conversion cost
Jan. 14,200 13,053 (11,100 + 3,100 × 63%)
Mar. 15,700 13,660 (12,300 + 3,400 × 40%)
May 23,260 21,688 (15,400 + 7,860 × 80%)
July 12,400 11,212 (10,200 + 2,200 × 46%)
