You are a summer interm at Webster Enterprises. You werea April the department m

Question

You are a summer interm at Webster Enterprises. You werea April the department manager forwarded the following infomation: signed to the Mixing Department (one of fou processes anvolved in the productioe of dog food as an assitant to dhe depatot mage Ar the Work in Process, July 120 Units started in production Endung units, April 30 00 164,000 24,000 Percent complete (Endang Units. Apnl 30) Materials Conversion c 100% 60% TOTAL Costs incuared Direct materials Direct labos Overhead 101,200 164,800 184,000 INSTRUCTIONS The departmesnt manager has given you a project requiring that you prepare a report thar shows the following The equivaleut uwats of production for materials and conversion cots The unit cost of production a. b. c. The total cost assigned to () units transferred out and (Gi) incomplete unst

Explanation / Answer

1) Unit transferred out = 20000+164000-24000 = 160000 Units

Equivalent unit of material = 160000+(24000*100%) = 184000 Units

Equivalent unit of material = 160000+(24000*60%) = 174400 Units

b) The unit cost of production

Material = 101200/184000 = 0.55

Conversion = (164800+184000)/174400 = 2

Total unit cost = 0.55+2 = $2.55

c) Cost of units transferred out = 2.55*160000 = 408000

Ending work in process inventory = (24000*.55+14400*2) = 42000

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