Answer:
Cost of goods transferred out $71,061.012
Value of closing inventory = $17,540.98
Explanation:
Cost per equivalent unit = Cost /total equivalent unit
<em>Material </em>
Equivalent unit = (100%×6,240) +( 100%× 3,000) = 9240
Cost per equivalent unit = $36,960/9,240 units= 4
<em>Labour</em>
Equivalent unit = (100%×6,240) + ( 25%× 3,000)= 6990 units
Cost per equivalent unit = ( 21,400 + 30,242)/6990 = 7.387982833
Cost of goods transferred out= (6,240× 4) + (7.38×6,240)=71,061.012
Value of closing inventory = (3,000× 4) + (7.38× 25%*3000)= 17,540.98
Cost of goods transferred out $71,061.012
Value of closing inventory = $17,540.98
