The cost per equivalent units of direct materials and conversion in the Bottling

Question

The cost per equivalent units of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.60 and $0.10, respectively. The equivalent units to be assigned costs are as follows.

The beginning work in process inventory had a cost of $3,620. Determine the cost of completed and transferred out production and the ending work in process inventory.

Cost of inventory transferred: ________

Ending Inventory: ________

Direct Materials Conversion Inventory in process, beginning of period 0 2,500 Started and completed during the period 50,780 50,780 Transferred out of Bottling (completed) 50,780 53,280 Inventory in process, end of period 3,060 2,200 Total units to be assigned costs 53,840 55,480

Explanation / Answer

Hi,

Please find the answer as follows:

Cost of inventory transferred: 39416

Cost of Ending Inventory = 2056

Thanks.

Direct Material Costs Conversion Costs Total Costs Inventory in Process (Balance)

3620 Inventory in process, beginning of period
250 250 Cost of Completed Beginning WIP

3870 Started and Completed During the Period 30468 5078 35546 Transferred Out of Bottling

39416 Inventory in process, end of period 1836 220 2056 Total Costs Assigned by the Bottling Department

41472

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