Question

Materials costs of $720000 and conversion costs of $800800 were charged to a processing department in the month of September. All materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 120000 units were started into production in September, and there were 8000 units in ending work in process that were 30% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September

Answer 1

The total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September is:

= $1,456,000.

Step-by-step explanation:

a) Data and Calculations:

Units Materials Conversion Total

Incurred during September $720,000 $800,800 $1,520,800

Equivalent units of production:

Units Materials Conversion

Started into production 120,000

Ending work in process 8,000 8,000 (100%) 2,400 (30%)

Completed and transferred out 112,000 112,000 (100%) 112,000 (100%)

Equivalent units 120,000 114,400

Total cost of production $720,000 $800,800

Equivalent units 120,000 114,400

Cost per equivalent units $6 $7

Cost assigned to:

Units completed and transferred out $672,000 $784,000 $1,456,000

Ending work in process 48,000 16,800 64,800

Total cost assigned & accounted for $720,000 $800,800 $1,520,800