Question

The cost per equivalent units of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.47 and $0.15, respectively. The equivalent units to be assigned costs are as follows. Direct Materials Conversion Inventory in process, beginning of period 0 3,000 Started and completed during the period 52,000 52,000 Transferred out of Bottling (completed) 52,000 55,000 Inventory in process, end of period 3,500 2,100 Total units to be assigned costs 55,500 57,100 The beginning work in process inventory had a cost of $3,500. Determine the cost of completed and transferred out production, and the ending work in process inventory. Completed and transferred out production $fill in the blank 1 Inventory in process, ending $fill in the blank 2

Answer 1

Answer:

Beverages on Jolt Company

Bottling Department

Completed and transferred out production = $32,690

Ending inventory in process = $1,960

Explanation:

a) Data and Calculations:

                                                                   Direct Materials      Conversion

Inventory in process, beginning of period        0                         3,000

Started and completed during the period      52,000               52,000

Transferred out of Bottling (completed)         52,000               55,000

Inventory in process, end of period                  3,500                  2,100

Total units to be assigned costs                     55,500                57,100

Cost per equivalent unit                                  $0.47                   $0.15

                                                    Direct Materials      Conversion      Total

Completed & transferred out             $24,440             $8,250      $32,690

                                                   ($0.47*52,000)   ($0.15*55,000)

Ending Work in process                           1,645                    315          1,960

                                                   ($0.47*3,500)      ($0.15*2,100)