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drect materials and conversion costs. Each product must pas theough Department A

ID: 2539409 • Letter: D

Question

drect materials and conversion costs. Each product must pas theough Department A and Department b Comsic costs are alocanad evenly throughous production Data for Department A for Feouary 2017 ane workin process, bogmng imventry 50% complete for marerals, 25% complet" fr carvers on Unts sarted duing February Work in process endng monery, 40% comples lor marerat, 10% complete for conversion 100 unts 1,000 units 250 units Costs for Department A for Februwy 2017 are Work in process, beginning invantary

Explanation / Answer

Answer

Units

Material Cmplete

Conversion Cost Complete

Opening units

400

50%

25%

Introduced

1000

Total

1400

Transferred

1150

100%

100%

Closing WIP

250

40%

10%

Equivalent Units

WIP

Total Units

Material

Conversion cost

Opening

400

50%

200

75%

300

Ending

250

40%

100

10%

25

Introduced and completed

750

100%

750

100%

750

TOTAL Equivalent Units

1400

1050

1075

Material

Conversion Cost

Current cost

$10500

$43000

EUP

1050

1075

Cost/unit

$10.0000

$40.0000

Units

Material Cmplete

Conversion Cost Complete

Opening units

400

50%

25%

Introduced

1000

Total

1400

Transferred

1150

100%

100%

Closing WIP

250

40%

10%