Question

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 92,000 92,000 Units in Ending Work in Process: Direct Materials (9,000 * 100%) 9,000 Conversion (9,000 * 60%) 5,400 Equivalent Units of Production 101,000 97,400 Cost per Equivalent Unit Costs of beginning work in process $ 42,400 $ 62,300 Costs incurred this period 141,900 190,900 Total costs $ 184,300 $ 253,200 Cost per equivalent unit $ 1.82 per EUP $ 2.60 per EUP
The total conversion costs transferred out of the Canning Department should be:_______.

Answer 1

Answer:

$239,200

Explanation:

The computation of total conversion costs transferred out of the Canning Department is shown below:-

Total conversion costs transferred out = Equivalent units × Cost per equivalent unit of conversion cost

= 92,000 × $2.60

= $239,200

Therefore for computing the total conversion costs transferred out we simply applied the above formula.