Explore BrainMass

Explore BrainMass

    Equivalent Units of Production: Grayson Manufacturing Company

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Polishing Department of Grayson Manufacturing Company has the following production and manufacturing cost data for August. Materials are entered at the beginning of the process.

    Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 18,400; ending inventory of 5,000 units 10% complete as to conversion costs.

    Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $177,200; labor and overhead applied in Polishing during the month, $102,680 and $257,140, respectively.

    Instructions:
    (a) Compute the equivalent units of production for materials and conversion costs for the month of August.
    (b) Compute the unit costs for materials and conversion costs for the month.
    (c) Determine the costs to be assigned to the units transferred out and in process.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:40 am ad1c9bdddf
    https://brainmass.com/business/accounting/equivalent-units-of-production-grayson-manufacturing-company-472613

    Solution Summary

    The solution computes equivalent units of production for materials and conversion costs, the unit costs for materials and conversion costs & also determines the costs to be assigned to the units transferred out and in process. This solution is formatted in the attached Excel file.

    $2.19

    ADVERTISEMENT