Answer:
1. a. 81,500
2. $38,481
3. $461,382
Explanation:
<u>The equivalent units for conversion costs during February.</u>
Conversion Costs = 15,700 x 65% + 62,900 x 100% + 10,100 x 85 %
= 81,690 units
Material Costs = 15,700 x 0% + 62,900 x 100% + 10,100 x 100 %
= 73,000 units
<u>The amount of direct materials cost assigned to ending work-in-process inventory at the end of February.</u>
Step 1 : Determine Cost per Equivalent unit
Conversion Costs = $168,000 ÷ 81,690 units = $2.06
Material Costs = $278,000 ÷ 73,000 units = $3.81
Total Cost = $2.06 + $3.81 = $5.87
Step 2 : Direct Material Cost assigned to ending work-in-process
Ending work-in-process (Material Cost) = 10,100 x $3.81
= $38,481
<u>The cost of the goods transferred out during February.</u>
Cost of the goods transferred out = $5.87 x 78,600
= $461,382
