Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work

ID: 2417200 • Letter: E

Question

Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process

The blending department had the following data for the month of March:

Required:

1. What is the output in equivalent units for March?
equivalent units

2. What is the unit manufacturing cost for March? Round your answer to the nearest cent.
$per unit

3. Compute the cost of goods transferred out for March.
$

4. Calculate the value of March's EWIP.

Units in BWIP — Units completed 7,200 Units in EWIP (40% complete) 750 Total manufacturing costs $27,000

Part 1)

The output in equivalent units is calculated with the use of following table:

________

Part B)

The unit manufacturing cost is calculated as follows:

________

Part C)

The cost of goods transferred out is calculated with the use of following formula:

Cost of Goods Transferred Out = Units Completed*Unit Manufacturing Cost = 7,200*3.60 = $25,920

________

Part D)

The cost of EWIP is calculated as follows:

Cost of EWIP = Units in Ending WIP*Unit Manufacturing Cost = 300*3.60 = $1,080

Units Completed 7,200 Add Units in EWIP (750*40%) 300 Equivalent Units of Output 7,500

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