Answer:
1. materials = 569,000 units , conversion = 556,000 units
2. materials = $1.15 , conversion = $0.70
3. materials = $44,850 , conversion = $18,200 , total = $63,050
Step-by-step explanation:
For this question, i will assume that the Weighted Average Cost Method is used since we do not have information on the specific method applied by this company.
Calculation of the equivalent units of production for materials and conversion.
1. Materials
Closing Work in Process (65,000 × 60%) = 39,000
Completed and Transferred to Finished Goods = 530,000
Equivalent units of production for materials = 569,000
2. Conversion Costs
Closing Work in Process (65,000 × 40%) = 26,000
Completed and Transferred to Finished Goods = 530,000
Equivalent units of production for materials = 556,000
Calculation of the cost per equivalent unit for materials and conversion
Remember :
Cost per equivalent unit = Total Costs ÷ Total Equivalent units
therefore,
1. Materials
Cost per equivalent unit = ($ 106,000 + $ 551,120) ÷ 569,000
= $1.15
2. Conversion Costs
Cost per equivalent unit = ($ 59,700 + $ 328,230) ÷ 556,000
= $0.70
Calculation of the cost of ending work in process inventory for materials, conversion, and in total
Materials ($1.15 × 39,000) = $44,850
Conversion Costs ($0.70 × 26,000) = $18,200
Total cost of ending work in process = $63,050