Sheridan Company has gathered the following information.
Units in beginning work in process | 20,900 | ||
Units started into production | 249,100 | ||
Units in ending work in process | 26,100 | ||
Percent complete in ending work in process: | |||
Conversion costs | 60 | % | |
Materials | 100 | % | |
Costs incurred: | |||
Direct materials | $108,000 | ||
Direct labor | $580,202 | ||
Overhead | $185,500 |
Compute equivalent units of production for materials and for conversion costs.
Materials |
Conversion Costs |
|||
The equivalent units of production |
Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials |
Conversion Costs |
|||
Unit costs |
$ |
$ |
Show the assignment of costs to units transferred out and in process.
Transferred out |
$ |
|
Ending work in process |
$ |
1) Unit transferred out = 20900+249100-26100 = 243900
Compute equivalent units of production for materials and for conversion costs.
Materials |
Conversion Costs |
|||
The equivalent units of production | 243900+26100 = 270000 | 243900+(26100*60%) = 259560 |
Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials |
Conversion Costs |
|||
Unit costs |
$108000/270000 = 0.40 |
765702/259560 = 2.95 |
Show the assignment of costs to units transferred out and in process.
Transferred out |
$3.35*243900 = 817065 |
|
Ending work in process |
26100*.40+15660*2.95 = 56637 |
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