Question

The Mixing Department of Healthy FoodsHealthy Foods had 65 comma 00065,000 equivalent units of materials for OctoberOctober. Of the 65 comma 00065,000 ​units, 40 comma 00040,000 units were completed and transferred to the next​ department, and 25 comma 00025,000 units were 2020​% complete. Healthy Foods'sHealthy Foods's costs per equivalent unit of production are $ 0.75$0.75 for direct materials and $ 0.55$0.55 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the​ weighted-average method. Calculate the cost of the 40 comma 00040,000 units completed and transferred out and the 25 comma 00025,000 ​units, 20 %20% ​complete, in the ending​ Work-in-Process Inventory.

Answer 1

Cost of completed and transferred out is $52,000 , and ending Work in Process is $21,500

Total Cost accounted for Direct Materials is $48,750 and Conversion Cost is $24,750

Step-by-step explanation:

The objective is to calculate the cost of the 40,000 units completed and transferred out and transferred out 25,000 units, 20 % complete in the ending work-in-process inventory.

Tasty Foods

The Production Cost Report - Mixing Department of Healthy Foods

Month Ended - (October 31st )

Cost Transferred Direct Conversion Total

In Materials Cost Costs

Cost

accounted (40,000× $0.75) (40,000× $0.55)

for: N/A = $30,000 = $22,000 $52,000

Ending work

in process N/A (25,000× $0.75) (25,000×20%× $0.55)

= $ 18,750 = $2,750 $21,500

Total cost

accounted for N/A $48,750 = $24,750 $73,500

Thus, Cost of completed and transferred out is $52,000 , and ending Work in Process is $21,500

Total Cost accounted for Direct Materials is $48,750 and Conversion Cost is $24,750