Question

Materials costs of $1026000 and conversion costs of $1370480 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, 190000 units were started into production in September, and there were 8000 units in ending work in process that were 40% 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

What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?

• $2,329,600

Step-by-step explanation:

beginning WIP = 0 units

units started = 190,000 units

ending WIP = 8,000 units

• 100% complete for materials (8,000 EUP)
• 40% complete for conversion (3,200 EUP)

units started and finished = 190,000 - 8,000 = 182,000

cost per EUP

materials = $1,026,000 / 190,000 = $5.40

conversion = $1,370,480 / 185,200 = $7.40

total = $12.80

cost of units transferred out = $12.80 x 182,000 = $2,329,600