Question

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 80,000 80,000 Units in Ending Work in Process: Direct Materials (12,000 * 100%) 12,000 Conversion (12,000 * 70%) 8,400 Equivalent Units of Production 92,000 88,400 Cost per Equivalent Unit Costs of beginning work in process $ 43,000 $ 63,200 Costs incurred this period 144,000 193,600 Total costs $ 187,000 $ 256,800 Cost per equivalent unit $ 2.03 per EUP $ 2.90 per EUP The total conversion costs transferred out of the Canning Department equals: Multiple Choice 1. $256,360. 2. $256,800. 3. $193,600. 4. $187,000. 5. $232,000.

Answer 1

5. $232,000.

Step-by-step explanation:

The computation of the total conversion costs transferred out of the Canning Department equals to

= Number of units completed and transferred out × Cost per equivalent unit

= 80,000 units × $2.90

= $232,000

In order to find out the total conversion cost, we simply multiplied the number of units completed and transferred out with the cost per equivalent unit