Answer:
Arsenio Company
1. & 2. Equivalent units and cost per equivalent unit:
Material X Material Y Conversion
Total equivalent units 100,000 66,000 83,000
Cost per equivalent unit $2.058 $3.10 $4.00
3. Cost of units transferred out = $604,428
4. Cost of the ending Work-in-Process Inventory = $137,972
Explanation:
a) Data and Calculations:
Units % completed
August 1: Work-in-Process 27,000 18,900 (70%)
Units started 73,000
Total units in process 100,000
August 31: Work-in-Process 34,000 17,000 (50%)
Units completed and
transferred out = 66,000
Cost of production:
Material X Material Y Conversion Total
Work-in-process inventory, $ 52,000 $90,000 $118,940 $260,940
August 1
Costs added during August 153,800 114,600 213,060 481,460
Total cost for the period $205,800 $204,600 $332,000 $742,400
Equivalent unit of production
Units completed and
transferred out (66,000) 66,000 (100%) 66,000 66,000
Ending WIP (34,000) 34,000 (100%) 0 17,000 (50%)
Total equivalent units 100,000 66,000 83,000
Cost per equivalent unit:
Total cost for the period $205,800 $204,600 $332,000
Total equivalent units 100,000 66,000 83,000
Cost per equivalent unit $2.058 $3.10 $4.00
Cost assigned to:
Units completed and
transferred out (66,000) $135,828 $204,600 $264,000 $604,428
Ending WIP 69,972 0 68,000 137,972
Total costs assigned $205,800 $204,600 $332,000 $742,400
