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Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.

Equivalent Units of Production Direct Materials Conversion
Units Completed and transferred out 56,000 56,000
Units in Ending Work in Process:
Direct Materials (15,000 * 100%) 15,000
Conversion (15,000 * 70%) 10,500
Equivalent Units of Production 71,000 66,500
Cost per Equivalent Unit
Costs of beginning work in process $40,800 $60,100
Costs incurred this period 136,900 184,300
Total costs $177,700 $244,400
Cost per equivalent unit $2.50 per EUP $3.68 per EUP

The total conversion costs transferred out of the Canning Department equals: _________

1 Answer

3 votes

Answer:

$206,080

Step-by-step explanation:

Total conversion costs transferred out of the Canning Department:

= Units Completed and transferred out * Cost per equivalent unit

= 56,000 * $3.68

= $206,080

So, the total conversion costs transferred out of the Canning Department equals $206,080

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