The Polishing Department of Burgoa Manufacturing Company has the following produ

Question

The Polishing Department of Burgoa Manufacturing Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.

Production: Beginning inventory1,400units that are 100% complete as to materials and32% complete as to conversion costs; units started during the period are18,800; ending inventory of7,600units19% complete as to conversion costs.

Manufacturing costs: Beginning inventory costs, comprised of $18,580of materials and $44,500of conversion costs; materials costs added in Polishing during the month, $165,240; labor and overhead applied in Polishing during the month, $101,900and $176,612, respectively.

(a) Compute the equivalent units of production for materials and conversion costs for the month of September.

Explanation / Answer

a.) Units of material = 20200 Conversion units = 14044 b.) Unit material cost = 9.1 unit conversion cost = 23 Total material cost = 183820 Total conversion cost = 323012 c.) Transferred out = 404460 Work in progress in material = 69160 conversion = 33212 Total costs = 506832

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