Answer:
1. Output in equivalent units for March is 22,950.
2. Unit manufacturing cost for March is $3.60
3. Cost of goods transferred out for March is $77,760
4. March's EWIP is $4,860
Explanation:
Given:
Units in BWIP — Units completed = 21,600
Units in EWIP (60% complete) = 2,250
Total manufacturing costs = $82,620
1) Units completed = 21,600
Ending work in process at 60% = 2,250 × .60 = 1,350
Output in equivalent units = 21,600 + 1,350 = 22,950
Output in equivalent units for March is 22,950.
2) Total manufacturing costs = $82,620
Equivalent units for March = 22,950
Unit manufacturing costs = Total manufacturing costs ÷ Equivalent units for March
= $82,620 ÷ 22,950 = $3.60
Unit manufacturing cost for March is $3.60
3) Manufacturing cost per unit = $3.60
Completed and transferred out units = 21,600
Cost of goods transferred out = Manufacturing cost per unit × Completed and transferred out units
= $3.60 × 21,600 = $77,760
Cost of goods transferred out for March is $77,760
4) Ending work in progress at 60% = 2,250 × 60% = 1,350
Cost per unit = $3.60
Value of March's EWIP = Ending work in progress at 60% × Cost per unit
= 1,350 × $3.60 = $4,860
