Pearl Company has the following production information for October: 45,000 units
ID: 2409457 • Letter: P
Question
Pearl Company has the following production information for October: 45,000 units transferred out and 14,000 units in ending work in process that are 100 percent complete for materials and 66 percent complete for conversion costs. Materials cost is $5.20 per equivalent unit and conversion cost is $8.20 per equivaient unit Determine the cost assigned to the units transferred out and the units in ending work in process using the weighted-average method Direct Materials Conversion Total Units Completed & Transferred Out Ending Inventory Total Cost Accounted for 01$Explanation / Answer
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
45000
100%
45000
100%
45000
Closing WIP
14000
100%
14000
66%
9240
Total
59000
Total
59000
Total
54240
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Total Cost
Units
Cost Allocated
Units
Cost Allocated
Material
$ 5.20
14000
$ 72,800.00
45000
$ 234,000.00
$ 306,800.00
$ -
Conversion cost
$ 8.20
9240
$ 75,768.00
45000
$ 369,000.00
$ 444,768.00
0
0
Total
13.4000
TOTAL
148568
TOTAL
603000
$ 751568.00
Direct Material
Conversion
Total Cost
Units Completed and Transferred Out
234000
369000
603000
Ending Inventory
72800
75768
148568
Total Cost Accounted For
306800
444768
751568
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
45000
100%
45000
100%
45000
Closing WIP
14000
100%
14000
66%
9240
Total
59000
Total
59000
Total
54240
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