6. Exercise 175 The Polishing Department of Estaban Company has the following pr

Question

6. Exercise 175 The Polishing Department of Estaban Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 2,000 units that are 100% complete as to materials and 40% complete as to conversion costs; units started during the period are 48,000, ending inventory of 6,000 units 30% complete as to conversion costs. Manufacturing costs: Beginning inventory costs,comprised of $18,000 of materials and $13,000 of conversion costs; materials costs added in Polishing during the month, $202,000 labor and overhead applied in Polishing during the month $178,300 and $312,500 respectively. Compute the equivalent units of productions for materials and conversion costs for the month of September. Materials Conversion Costs Total equivalent units so,ooo | 45,g00 Compute the unit costs for materials and conversion costs for the month. (Round answers to 2 decimal places,e.g.15.25.) Materials Conversion Costs Unit costs Determine the costs to be assigned to the units transferred out and in process. Cost assigned to units transferred out Cost assigned to the units in ending work in process

Explanation / Answer

Equivalent unit of material = 44000+(6000*100%) = 50000 unit

equivalent unit of conversion = 44000+(6000*30%) = 45800 units

Unit cost of material = (18000+202000)/50000 = 4.4 per unit

Unit cost of converison cost = (13000+178300+312500)/45800 = 11 per unit

Cost assignd to units transferred out = (11+4.4)*44000 = 677600

Cost assigned to units in ending work in proces s= (6000*4.4+1800*11) = 46200

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