Question

Cost of Units Transferred Out and Ending Work in Process

The The rate used to allocate costs between completed and partially completed production.costs per equivalent unit of direct materials and conversion in the Bottling Department of Rocky Springs Beverage Company are $1.8 and $0.45, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		2,300
Started and completed during the period	38,000		38,000
Transferred out of Bottling (completed)	38,000		40,300
Inventory in process, end of period	5,000		1,500
Total units to be assigned costs	43,000		41,800

The beginning work in process inventory had a cost of $1,520. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production	$
Inventory in process, ending	$

Answer 1

1	Completed and transferred out production
				Materials	Conversion	Total
	Inventory In process, Beginning			0	2300
	Started and completed during the period			38000	38000
	Cost of Units Transferred out			38000	40300
	Cost per Equivalent			$1.80	$0.45
				$68,400.00	$18,135.00
	Inventory in process, Beginning Cost				$1,520.00
				$68,400.00	$19,655.00	$88,055.00
2	Inventory in process ending
				Materials	Conversion	Total
	Ending work in process			5000	1500
	Cost per equivalent per unit			$1.80	$0.45
	Cost of ending work in process inventory			$9,000.00	$675.00	$9,675.00
	Completed and Transferred out production			$88,055
	Inventory in process, ending			$9,675