Question

# Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process The blending...

Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process

The blending department had the following data for the month of March:

 Units in BWIP — Units completed 21,600 Units in EWIP (10% complete) 2,250 Total manufacturing costs \$106,943

Required:

1. What is the output in equivalent units for March?
equivalent units

2. What is the unit manufacturing cost for March? Note: Round your answer to the nearest cent.
\$per unit

3. Compute the cost of goods transferred out for March.
\$

4. Calculate the value of March's EWIP.
\$

Solution:

1. What is the output in equivalent units for March?

Output in equivalent units for March = Units completed + Ending work in process

= 21,600 + 225

Output in equivalent units for March = 21,825 units.

.

2. What is the unit manufacturing cost for March?

Unit manufacturing cost for March = Total manufacturing costs / Equivalent units for March

= \$106,943 / 21,825

Unit manufacturing cost for March = \$4.90 per unit

.

3. Compute the cost of goods transferred out for March.

Cost of goods transferred out for March = Unit manufacturing cost  * Units completed

= \$4.90 * 21,600

Cost of goods transferred out for March = \$105,840

.

4. Calculate the value of March's EWIP.

Value of March's EWIP = Ending work in process * Unit manufacturing cost

= 225 * \$4.90

Value of March's EWIP = \$1,102.5

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