Inter Manufacturing Company manufactures expensive chairs. The following data re

Question

Inter Manufacturing Company manufactures expensive chairs. The following data relates to the month of January 20x2 Units 1,000 Beginning Work in Process (1-1-x2) Completed and transferred out during January Ending Work in Process (31-1-x2) 10,000 2,000 Percentage of Completionn 60% 40% Beginning Work in Process (1-1-x2) Ending Work in Process (31-1-x2) Total costs $10,000 $112,000 Conversion costs S5,200 $52,400 Beginning Work in Process (1-1-x2) Costs added during January Beginning Work in Process (1-1-x2) Costs added during January The company uses Weighted Average Process Costing Method and materials are added at the beginning of process A. $110,000 the equivalent units of production for conversion costs ( for January) $11.03 C 12,000 D. $107,000 E. $5.33 F. s5.60 G. 10,800 H. 11,500 l. $122,000 J. $10.7 K. $15,000 L. 10,600 M.$5.37 N. $11,600 The total unit cost- he cost of ending inventory of work in process- he cost of goods transferred out -

Explanation / Answer

Answer are as follows:

G. The Equivalent units of Production for conversion Cost   10,800 units

J. The total Unit cost = $ 10.70

K. The cost of ending inventory of Work in progress = $ 15,000

D. The cost of goods transferred Out = $ 107,000

The explanation is as follows:

Statement Showing Equivalent Units Input Particulars Output Material Equivalent Units Conversion Cost Equivalent Units Units % Completion Units % Completion 1,000 Opening WIP 11,000 Units Input Completed and transferred out 10,000 10,000 100% 10,000 100% Closing WIP 2,000 2,000 100% 800 40% 12,000 Total 12,000 12,000 10,800 Statement Showing Cost per unit Elements Equivalent Units Opening Cost Current Cost Total Cost Per Eq. Units Material 12,000 4800 59600 64400 5.37 Conversion 10,800 5200 52400 57800 5.35 Total Cost per unit 10.72 Approx Production Cost Summary Cost of Units Completed and Transferred out 107200 Approx (10,000 units@10.72) Cost of Ending Inventory of WIP 15020 Approx Material(2,000 units@5.37) 10740 Conversion(800 units@5.35) 4280

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