Question

The cost per equivalent unit of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.60 and $0.20, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct MaterialsConversionInventory in process, beginning of period03,080Started and completed during the period51,56051,560Transferred out of Bottling (completed)51,56054,640Inventory in process, end of period3,7602,500Total units to be assigned costs55,32057,140The beginning work in process inventory had a cost of $3,100. Determine the cost of completed and transferred out production and the ending work in process inventory. Round answers to nearest whole dollar.

Answer 1

The cost of production transferred out is $41,864, and the ending work in process inventory cost is $5,856 when rounding to the nearest whole dollar.

Step-by-step explanation:

To determine the cost of completed and transferred out production along with the ending work in process inventory, we must apply the cost per equivalent unit to the number of equivalent units in each category. The given costs per equivalent unit are $0.60 for direct materials and $0.20 for conversion.

To calculate the cost of production that was completed and transferred out:

1. Direct Materials Cost: 51,560 units (transferred out) × $0.60 = $30,936
2. Conversion Cost: 54,640 units (transferred out) × $0.20 = $10,928

The total transferred out cost is $30,936 (direct materials) + $10,928 (conversion) = $41,864.

To calculate the ending work in process inventory costs:

1. Direct Materials Cost: 3,760 units × $0.60 = $2,256
2. Conversion Cost: 2,500 units × $0.20 = $500

The ending work in process cost is $2,256 (direct materials) + $500 (conversion) + $3,100 (beginning inventory cost) = $5,856, rounded to the nearest whole dollar.

Answer 2

Cost of completed and transferred out production = $41,864

The ending work in process inventory = $2,756

Step-by-step explanation:

D.Material Conversion Total cost

Inventory in Process (Balance) $3,100

Inventory in process, beginning $616 $616

of period (0.20*3080)

Cost of Completed Beginning WIP $3,716

Started and Completed During $30,936 $10,312 $41,248

the Period(0.60 & 0.20 * 51,560)

Transferred Out of Bottling $30,936 $10,928 $41,864

(0.60*51,560)(0.20*54,640)

Inventory in process, end of period $2,256 $500 $2,756

(0.60*3,760) (0.20*2,500)

Total Costs Assigned by the $44,620

Bottling Department