The costs per equivalent unit of direct materials and conversion in the Filling Department of Savannah Lotion Company are $0.35 and $0.08, respectively. The equivalent units to be assigned costs are as follows:
Equivalent Units
Direct Materials | Conversion
Inventory in process, beginning of period 0 | 1,200
Started and completed during the period 37,400 | 37,400
Transferred out of Filling (completed) 37,400 | 38,600
Inventory in process, end of period 600 | 150
Total units to be assigned costs 38,000 | 38,750
The beginning work in process inventory had a cost of $1,200. Determine the cost of completed and transferred-out production and the ending work in process inventory.
Answer:
Direct
Materials Conversion Total
Costs Costs Costs
Inventoryin process, balance……………………………
Inventory in process, beginning of period…………… 0 + 1,200 × $0.08 96
Cost of completed beginning work in process……… $ 1,296
Started and completed during the period……………… 37,400 × $0.35 + 37,400 × $0.08 16,082
Transferred out of Filling (completed)………………… $17,378
Inventory in process, end of period…………………… 600 × $0.35 + 150 × $0.08 222
Total costs assigned by the Filling Dept. …………… $17,600
Completed and transferred-out production………… $17,378
Inventoryin process, ending…………………………… $222
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