Q20: Data for the Packaging Department for the period is as follows: Units trans

Question

Q20: Data for the Packaging Department for the period is as follows: Units transferred out of the department during the period, 800; Units in ending Work in Process, 200, Direct Materials 100% Complete, Conversion Costs 50% Complete. The cost per equivalent unit for direct materials is $8.00; and for conversion costs is $22.80. What is the total cost of materials in the ending inventory? Explain how you computed this amount.

Q21: Data for the Packaging Department for the period is as follows: Units transferred out of the department during the period, 800; Units in ending Work in Process, 200, Direct Materials 100% Complete, Conversion Costs 50% Complete. The cost per equivalent unit for direct materials is $8.00; and for conversion costs is $22.80. What is the total cost of conversion in the ending inventory? Explain how you computed this amount.

Explanation / Answer

20) Total cost of material in the ending inventory = Equivalent unit of ending wip*material cost per equivalent unit

= (200*100%*8)

Total cost of material in the ending inventory = $1600

21) Total cost of conversion in the ending inventory =Equivalent unit of ending wip*conversion cost per equivalent unit

=(200*50%*22.80)

Total cost of conversion in the ending inventory  = $2280

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