Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
A).Total Process Unit = Opening Inventory + Started Units During the Period
= 1,740 + 46,900
= 48,640
Transferred Unit Out = Total Process Unit - Closing Inventory Units
= 48,640 - 7,800
= 40,840
Particulars Material cost Conversion cost
Transferred unit out 40,840 40,840
Add: Work in process 7,800 × 100% = 7,800 7,800 × 10% = 780
Equivalent units of production 48,640 41,620
b).Total Material Cost = Opening Inventory of Material Cost + Material Cost Added in Polishing
= $22,100 + $221,100
= $243,200
Material Cost Per Unit =Total Material Cost ÷ Material Cost Equivalent Units of Production
= $243,200 ÷ 48,640
= $5
Opening inventory cost for conversion = $37,103
During September added cost = $127,100 + $258,240 = $385,340
Total Conversion Cost = During September Added Cost + Opening Inventory Cost for Conversion
= $385,340 + $37,103
= $422,443
Conversion Cost Per Unit =Total Conversion Cost ÷ Conversion Cost Of Equivalent Units Of Production
= $422,443 ÷ $41,620
= $10.15
c. ) Unit Transferred Out in Process = Transferred Units Out × (Material Cost Per Unit + Conversion Cost Per Unit)
= 40,840 × ($5 + $10.15)
= $40,840 × $15.15
= $618,726
Material cost work in process = 7,800 × $5 = $39,000
Conversion cost work in process = 780 × $10.15 = $7,917
Total cost of work in process = $46,917
