Answer:
<em>a. compute the equivalent units of production for materials and conversion costs</em>
materials = 44,500
conversion costs = 40,000
<em>b. compute the unit costs for materials and conversion costs for the month</em>
materials = $4.40
conversion = $10.65
<em>c. determine the costs to be assign to the units transferred out in the process</em>
Cost of units transferred out in the process = $594,475
Explanation:
a. compute the equivalent units of production for materials and conversion costs
materials
Units Completed and Transferred to Finished Goods (100%×39,500) =39,500
Units in Closing Work In Process (100%×5,000) = 5,000
Total = 44,500
conversion costs
Units Completed and Transferred to Finished Goods (100%×39,500) =39,500
Units in Closing Work In Process (10%×5,000) =
500
Total = 40,000
Calculation of Units Completed and Transferred to Finished Goods
1,600+42,900-5,000 = 39,000
b. compute the unit costs for materials and conversion costs for the month
materials
Opening Work In Process Costs = $20,000
Add Costs Incurred during the Period = $175,800
Total = $195,800
<em>Unit costs for materials = Total Costs / Equivalent units of production for materials</em>
= $195,800 / 44,500
= $4.40
conversion
Opening Work In Process Costs = $43,180
Add Costs Incurred during the Period($125,680 + $257,140) = $382,820
Total = $426,000
<em>Unit costs for conversion = Total Costs / Equivalent units of production for conversion</em>
= $426,000 / 40,000
= $10.65
c. determine the costs to be assign to the units transferred out in the process
Total Unit Cost Calculation
Materials = $4.40
Conversion = $10.65
Total = $15.05
Cost of units transferred out in the process = 39,500 × $15.05
= $594,475
