Answer:
Material Costs Transferred Out $ 156,640
Conversion Costs Transferred Out $ 226355
Explanation:
<u>Mitchell Manufacturing</u>
<u>Canning Department. </u>
<u>Equivalent Units of Production </u>
<u> Direct Materials Conversion</u>
Units Completed and transferred out 44,000 44,000
Units in Ending Work in Process:
Direct Materials (9,000 * 100%) 9,000
Conversion (9,000 * 70%) 6,300
Equivalent Units of Production 53,000 50,300
Cost per Equivalent Unit
Costs of beginning work in process $43,400 $63,700
Costs incurred this period 145,100 195,100
Total costs $188,500 $258,800
<u>Cost per equivalent unit $3.56 per EUP $5.15 per EUP </u>
The total conversion costs = $ 258,800
Less Conversion Costs of Ending Inventory= ( 6300 * 5.15)= 32445
Conversion Costs Transferred Out $ 226355
The Total Material Costs $188,500
Less Material Costs of Ending Inventory= ( 9000 * 3.56)= 32040
Material Costs Transferred Out $ 156,640
<em>It can also be solved by multiplying EUP with the </em> <em>Units Completed and transferred out and we will get the same results.</em>
<em></em>
Material Costs Transferred Out ( 44000*3.56) $ 156,640
Conversion Costs Transferred Out ( 44000*5.15) $ 226355