Work in process, beginning:
Units in process 2,400
Percent complete with respect to materials 75%
Percent complete with respect to conversion 50%
Costs in the beginning inventory:
Materials cost $8,400
Conversion cost $7,200
Units started into production during the month 20,800
Units completed and transferred out 22,200
Costs added to production during the month:
Materials cost $97,400
Conversion cost $129,600
Work in process, ending:
Units in process 1,000
Percent complete with respect to materials 80%
Percent complete with respect to conversion 60%
Part A: Determine the equivalent units of production.
Part B: Determine the costs per equivalent unit.
Part C: Determine the cost of ending work in process inventory.
Part D: Determine the cost of the units transferred to the next department.
The solution explains how to calculate equivalent units, cost per equivalent unit and the cost of units transferred and in ending inventory.