Answer:
The total cost of units completed during the period was $132,396
Explanation:
Step 1 Calculate the Cost incurred during the process in respect to Raw Materials and Conversion Costs
Raw Materials:
Opening Work in Progress 0
Add Started During the year 95200
Total Raw Materials Cost 95,200
Conversion Costs:
Opening Work in Progress 0
Add Started During the year (56500+8600) 65,100
Total Conversion Cost 65,100
Step 2 Calculate the total equivalent units in respect of Raw Materials and Conversion Costs at the close of the process
Raw Materials:
Completed-100% 10200
Closing Work In Progress - 100% 3400
Total equivalent Units - Raw Materials 13600
Raw Materials are added at the beginning of the process so they are 100% complete for both the Closing Work In Progress and Completed units
Conversion Costs:
Completed-100% 10200
Closing Work In Progress - 20% 680
Total equivalent Units - Conversion Costs 10880
Conversion Costs are added evenly during the process so they are 100% complete for Completed Units and 20% for Closing Work in process.
Step 3 Calculate Total Equivalent Cost per unit
Raw Materials = Total Cost / Total Equivalent units
= $95,200 /13600
=$7.00
Conversion Costs = Total Cost / Total Equivalent units
= $65,100 /10880
=$5.98
Total Equivalent Cost per unit = 12.98
The total cost of units completed during the period was
=10200×$12.98
=$132,396
Answer:
$132,431.25
Explanation:
In order to calculate the cost of finished products, we must first determine the equivalent units remaining as work in progress (WIP)
ending inventory: 3,400 equivalent units for raw material (= 3,400 x 100%) and 680 equivalent units for conversion costs (= 3,400 x 20%).
cost of finished units:
materials = (10,200 / 13,600) x $95,200 = $71,400
direct labor = {10,200 / (680 + 10,200)} x $56,500 = $52,968.75
overhead = {10,200 / (680 + 10,200)} x $8,600 = $8,062.50
total cost = $132,431.25
