NSPI a chemical manufacturing company. M = Material; CC = Conversion Costs Using
ID: 2589401 • Letter: N
Question
NSPI a chemical manufacturing company.
M = Material; CC = Conversion Costs
Using FIFO.
Units in EWIP
Equivalent units for CC
Cost per equivalent units, total
Cost of completed and transferred out
Cost for ending WIP
120
$63,789
$77.00
$64,280
800
100
$6,211
$71.42
890
200
$5,720
NSPI a chemical manufacturing company.
The following data pertains to its Production Dep. Accounting period is January 20XX M CC Beg work in process (BWIP) units(u) 200 Percentage of completion BWIP % 100% 40% Costs of BWIP $ $2,000 $2,000 Added (Started) u 800 Cost of added $ $22,000 $44,000 Completed & Transferred Out (CTO) u 900 End work in process (EWIP) % 100% 70% CC are added proportionally over the process. No Spoilage or Defective units.M = Material; CC = Conversion Costs
Using FIFO.
Units in EWIP
Equivalent units for CC
Cost per equivalent units, total
Cost of completed and transferred out
Cost for ending WIP
A.120
B.$63,789
C.$77.00
D.$64,280
E.800
F.100
G.$6,211
H.$71.42
I.890
J.200
K.$5,720
Explanation / Answer
NSPI Product Cost Report Direct Materials Conversion Costs Statement of equivalent production Materials Conversion Costs Particulars Input Particulars Output % Equivalent Units % Equivalent Units Beginning WIP 200 Transfer from Addition 800 Opening WIP 200 0 0 60 120 Completed & transferred 700 100 700 100 700 Total transfer 900 700 820 Ending WIP 100 100 100 70 70 Total 1000 800 890 Cost element Total costs Equivalent units Cost per Equivalent units Material 22000 800 27.5 Conversion costs 44000 890 49.44 Total 66000 Completed/Transferred Direct Materials =700*27.5 19250 Conversion Costs =820*49.44 40540 Cost of goods Manufactured 59790 Ending Inventory Direct Materials =100*27.5 2750 Conversion Costs =70*49.44 3460 Cost of ending Inventory 6210 Total Cost allocated 66000
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