Orioles Co. began March with no work in process in its first department. During
ID: 2503589 • Letter: O
Question
Orioles Co. began March with no work in process in its first department. During March, the following production costs were incurred in this department:
Direct Materials- $456,280
Conversion costs- $865,590
During March, 200,000 units were started. Work in process at March 31 consisted of 20,000 units (ending inventory). These units in process were 35% complete as to materials and 15% complete as to conversion costs.
Compute the following for the period ending March 31:
(a) Total costs to account for
(b) Equivalent units for: Materials, Conversion Costs
(c) Cost per equivalent unit for: Materials, Conversion costs
(d) Total cost of units completed and transferred out
(e) Total cost of work in process at March 31
Explanation / Answer
Compute the following for the period ending March 31:
(a) Total costs to account for
(b) Equivalent units for: Materials, Conversion Costs
Equivalent units for: Materials = 187000
Equivalent units for: Conversion Costs = 183000
(c) Cost per equivalent unit for: Materials, Conversion costs
Cost per equivalent unit for: Materials = $ 2.44
Cost per equivalent unit for: Conversion costs = $ 4.73
(d) Total cost of units completed and transferred out
(e) Total cost of work in process at March 31
Unit Direct Material Conversion Cost
% of Completion Equivalent Unit % of Completion Equivalent Unit
Unit Transferred Out 180000 100% 180000 100% 180000
Closing WIP 20000 35% 7000 15% 3000
Total Equivalent Unit
187000
183000
Calculation of Cost per Equivalent Unit
Total Equivalent Unit Cost per Equivalent Unit
Direct Material 456280 187000 $ 2.44
Conversion Cost 865590 183000 $ 4.73
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