Cederholm
Company has gathered the following information.
Units
in beginning work in process -0-
Units
started into production 36,000
Units
in ending work in process 6,000
Percent
complete in ending work in process:
Conversion
costs 40%
Materials
100%
Costs
incurred:
Direct
materials $72,000
Direct
labor $81,000
Overhead
$97,200
Instructions
(a)
Compute equivalent units of production for materials and for conversion costs.
(b)
Determine the unit costs of production.
(c)
Show the assignment of costs to units transferred out and in process.
(a) Materials: 30,000 + 6,000
= 36,000
Conversion
costs: 30,000 + (6,000 X 40%) = 32,400
(b) Materials: $72,000/36,000 = $2.00
Conversion
costs: ($81,000 + $97,200)/32,400 = $5.50
(c) Units transferred out:
30,000 X $7.50 = $225,000
Units
in ending work in process:
6,000
X $2.00 = $12,000
2,400
X $5.50 = 13,200
$25,200
