Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work
ID: 2501113 • Letter: E
Question
Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process The cooking department had the following data for the month of March: What is the output in equivalent units for March? What is the unit manufacturing cost for March? Round your answer to two decimal places. Compute the cost of goods transferred out for March. If required, round your answers and intermediate calculations to two decimal places. Calculate the value of March's EWIP. If required round your answer and intermediate calculations to two decimal places.Explanation / Answer
1.
Ending Work in process = 460 units
Percentage of completion = 50%
Equivalents complete units = 460 units * 50% = 230 units
Actual completed units = 3,870
Total output in equivalents units = 3,870 + 230 = 4,100 equivalent units
2.
Total manufacturing cost = $9,700
Unit manufacturing cost = $9,700 / 4,100 = $2.37
3.
Units actually transferred out = Completed units = 3,870 units
Cost of goods transferred out = 3,870 units * $2.37 = $9,171.90
4.
March EWIP = 460 units
Equivalent complete units = 230 units
Cost of EWIP = 230 units * $2.37 = $545.10
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