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vladimir1956 [14]
3 years ago
8

A golf ball manufacturer gives us its data for the year: WIP Inventory, January 1 Units started Units completed and transferred

out WIP Inventory, December 31 Direct materials Direct labor Manufacturing Overhead 0 units 9,500 units 6,400 units 3,100 units $15,478 $7,400 $5,611 Units in ending WIP Inventory were 90% complete for materials and 60% complete for conversion costs. On December 31, the total costs of units completed and transferred would be closest to (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.) A. $30,964 B. $7,327 c. $10,106 D. $7,629.
Business
1 answer:
N76 [4]3 years ago
6 0

Answer:

c. $10,106 if taken separately for Direct Material or Conversion Costs

Or None of these as total cost is $ 10,779+$ 10,081= $20860 for units transferred out

Explanation:

                                         

                                              Units         % of                       Eq. Units

                                                              Completion      D.M          Conversion

Units completed and

transferred out                 6,400 units         100%            6400           6400

WIP Inventory,                  3,100 units         90%,60%       2790           1860

December 31

<u>Total Units to account for                                                 9190             8260</u>

Direct materials            $15,478

Direct labor                    $7,400

Manufacturing Overhead  $5,611

Direct Material Cost per unit= $ 15478/9190= $ 1.684

Conversion Cost per unit=   $13011 / 8260= 1.575=$ 1.58

Direct Material Cost for Completed units = 6400 * $1.684= $ 10,779

Conversion Cost for Completed units = 6400 *1.575= $ 10,081

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