Answer:
1. materials = 18,400 units and conversion = 15,463 units
2. materials = $2.22 and conversion = $3.76
3. units transferred out = $90,298 and units still in process = $8,691
Explanation:
Units Completed and Transferred = Opening Work In Process Inventory + Started during the Period - Closing Work In Process
= 3,300 + 15,100 - 3,300
= 15,100
<u>First Calculate the Equivalent units of Production in Respect of Materials and Conversion Costs :</u>
1. Materials
Closing Work In Process (3,300 × 100%) = 3,300
Completed and Transferred (15,100 × 100%) = 15,100
Equivalent units of Production for Raw Materials = 18,400
2. Conversion Costs
Closing Work In Process (3,300 × 11%) = 363
Completed and Transferred (15,100 × 100%) = 15,100
Equivalent units of Production for Conversion Costs = 15,463
<u>Then calculate the cost per equivalent unit for materials and conversion :</u>
Cost per equivalent unit = Total Costs (Opening + Current Year) ÷ Total Equivalent Units
1. Materials
Cost per equivalent unit = ($10,500 + $30,400) ÷ 18,400
= $2.22
2. Conversion Costs
Cost per equivalent unit = ($9,600 + $48,500) ÷ 15,463
= $3.76
<em>Total Cost per equivalent unit = Materials + Conversion Costs</em>
= $2.22 + $3.76
= $5.98
<u>Then, determine the costs to be assigned to the units transferred out and the units still in process</u>
Units transferred out = units completed and transferred × Total Cost per equivalent unit
<em> = </em>15,100 × $5.98
= $90,298
Units Still In Process :
Materials (3,300 × $2.22) = $7,326
Conversion Costs ( 363 × $3.76) = $1,365
Total = $8,691
