Answer:
1. Completed Units Conversion Costs= $ 3661.8
2. Ending work-in-process Conversion Costs $ 427
3.Total Units Accounted For 9500
Explanation:
Given Data
Beginning Work-in-Process Inventory 0 gallons
Started in production 9,500 gallons
Completed and transferred out in May 6,000 gallons
Ending Work-in-Process Inventory (20% of the way through the blending process) 3,500 gallons
Costs Beginning Work-in-Process Inventory $0
Costs added during May:
Direct materials 5,700
Direct labor 2,085
Manufacturing overhead allocated 2,004
Conversion Costs = 4089
Total costs added during May $9,789
<u> Completed and transferred out:</u>
<u>Materials 9500 Units</u>
<u>Conversion 7050 Units</u>
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Completed &
Transferred out 6,000 100 100 6000 6000
<u>Ending WIP 3500 100 20 3500 700</u>
<u>Total Equivalent Units 9500 6700</u>
<u />
<em><u>First we find the Equivalent units and then Cost per equivalent unit.</u></em>
Conversion Costs Per Equivalent Units = Total Conversion Costs / Conversion EUP
Conversion Costs Per Equivalent Units = 2,085+2,004/ 6700
= $ 0.61 per equivalent unit
<u><em>Now we multiply the Cost PER EUP to find the costs accounted for </em></u>
Conversion Costs Accounted For :
1. Completed Units= 6000* 0.61= $ 3661.8
In Process = 700* 0.61= $ 427
Total Conversion Costs = $ 4088.8
<u><em>Now these costs are equal to the conversion costs given in the data = 2085+ 2004= $ 4089. The difference is due to rounding off decimal numbers.</em></u>
<u>2. Ending work-in-process</u>
In Process = 700* 0.61= $ 427
3. Total Units Accounted For
Beginning Work-in-Process Inventory 0 gallons
<u>Started in production 9,500</u>
<u>Total Units 9500</u>
<u />
Completed and transferred out 6,000 gallons
<u>Ending Work-in-Process Inventory 3,500 gallons</u>
<u>Total Units Accounted For 9500 </u><u> </u>