Question

Materials costs of $638000 and conversion costs of $710700 were charged to a processing department in the month of September. 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, 110000 units were started into production in September, and there were 10000 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:

$1,312,850

Step-by-step explanation:

a) Data and Calculations:

Materials costs = $638,000

Conversion costs 710,700

Total costs = $1,348,700

Equivalent units produced = 113,000 (110,000 + 30% of 10,000)

Cost per equivalent unit = $11.935 ($1,348,700/113,000)

Cost of manufactured units transferred out = 110,000 * $11.935 = $1,312,850