Question

# Unit Cost and Cost Assignment, Nonuniform Inputs Loran Inc. had the following equivalent units schedule and...

Unit Cost and Cost Assignment, Nonuniform Inputs

Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September:

 Materials Conversion Units completed 180,000 180,000 Add: Units in ending WIP x Fraction complete 85,000 56,100 (85,000 x 66%) Equivalent units of output 265,000 236,100 Costs: Work in process, September 1: Materials \$147,000 Conversion costs 7,875 Total \$154,875 Current costs: Materials \$1,198,000 Conversion costs 475,665 Total \$1,673,665

Required:

1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent.

 Unit materials cost \$ Unit conversion cost \$ Total unit cost \$

2. Calculate the cost of units transferred out and the cost of EWIP. Round unit cost value to the nearest cent in intermediate calculations. If required, round final answers to the nearest dollar.

 Cost transferred out \$ Cost of ending work in process \$

 1 Materials Conversion costs Work in process, September 1 147000 7875 Current costs 1198000 475665 Total costs 1345000 483540 Divide by Equivalent units of output 265000 236100 Units costs 5.08 2.05 Unit materials cost 5.08 Unit conversion cost 2.05 Total unit cost 7.13 2 Cost transferred out 1283400 =180000*7.13 Cost of ending work in process 546805 =(85000*5.08)+(56100*2.05)

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.