Answer:
Total Costs Transferred Out 906422.4
<em>Difference may be due to rounding .</em>
Explanation:
Samantha's Office Supplies
Equivalent units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Completed and
transferred out 162,000 (100% ) (100% ) 162,000 162,000
WIP,
Normal Spoilage 6,480 (100% ) (100% ) 6,480 6,480
<u>Ending inventory 30,000 (100% ) (25% ) 30,000, 7,500</u>
<u>Accounted For 198,480 198,480 175,980 </u>
Costs: Total Direct materials Conversion costs
WIP, beginning
inventory: 388,000 $ 300,000 88,000
<u>Costs Added 639618 419,832 219,786</u>
Total Costs
To Account for 1027618 719,832 307786
Divided By
Equivalent Units 198,480 175,980
<u>Equivalent Unit Costs 5.38 3.63 1.75 </u>
<u><em>Assignment of Costs </em></u>
Transferred out ( 5.38* 162,000)= 871560
Normal Spoilage (5.38* 6480)<u>= 34862.4</u>
Total Costs Transferred Out 906422.4
Difference may be due to rounding .
