Question

Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $0.95 and $2.90, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 5,000 Started and completed during the period 63,000 63,000 Transferred out of Filling (completed) 63,000 68,000 Inventory in process, end of period 4,000 1,200 Total units to be assigned costs 67,000 69,200 The beginning work in process inventory had a cost of $3,250. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Answer 1

• Cost of completed and transferred-out production = $260,300
• Cost of Ending inventory = $7,280

Step-by-step explanation:

Costs per equivalent unit of direct materials and conversion are $0.95 and $2.90, respectively.

Cost of completed and transferred-out production:

Units Transferred out of Filling (completed):

Direct materials = 63,000

Conversion = 68,000

= Cost of completed and transferred materials + cost of conversion and transferred + beginning inventory

= (63,000 * 0.95) + (68,000 * 2.90) + 3,250

= ‭59,850‬ + ‭197,200‬ + 3,250

= ‭$‭260,300‬

Cost of Ending inventory:

Inventory in process, end of period

Direct materials = 4,000

Conversion = 1,200

= (4,000 * 0.95) + (1,200 * 2.90)

= $‭7,280‬