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The Blending Department of Luongo Company has the following cost and production data for the month...

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Accounting

The Blending Department of Luongo Company has the following costand production data for the month of April.

Costs:
   Work in process, April 1
      Direct materials: 100%complete$ 122,000
      Conversion costs: 20%complete85,400
         Cost ofwork in process, April 1$ 207,400
   Costs incurred during production inApril
      Direct materials$ 976,000
      Conversion costs445,300
         Costsincurred in April$ 1,421,300


Units transferred out totaled  20,740. Ending work inprocess was  1,220 units that are 100% complete as tomaterials and 40% complete as to conversion costs.

(a)

Compute the equivalent units of production for (1) materials and(2) conversion costs for the month of April.

Materials

Conversion Costs

The equivalent units of production

(b) Compute the unit costs for the month. (Round unit costs to 0decimal places, e.g. $25.)

Unit cost for the month

(c) Determine the costs to be assigned to the units transferred outand in ending work in process.

Transferred out$
Work in process
Materials$
Conversion costs
Total costs$

Answer & Explanation Solved by verified expert
4.4 Ratings (671 Votes)

Requirement a

Material Conversion
Equivalent Units of Production                 21,960                 21,228

Requirement b

Material Conversion
Cost per equivalent Unit $ 50.00 $ 25.00

Requirement C

Material Conversion Total
Units Completed $       10,37,000 $         5,18,500 $        15,55,500
Ending Inventory $             61,000 $             12,200 $              73,200

Working

Statement of Equivalent Units
Material Conversion Cost
Units Complete % Equivalent units Complete % Equivalent units
Transferred                 20,740 100%                  20,740 100%                  20,740
Closing WIP                    1,220 100%                    1,220 40%                        488
Total                 21,960 Total                  21,960 Total                  21,228
Cost per Equivalent Units
COST Material Conversion Cost TOTAL
Beginning WIP Inventory Cost $         1,22,000 $              85,400 $        2,07,400
Cost incurred during period $         9,76,000 $          4,45,300 $      14,21,300
Total Cost to be accounted for $       10,98,000 $          5,30,700 $      16,28,700
Total Equivalent Units                 21,960                  21,228
Cost per Equivalent Units $               50.00 $                25.00
Statement of cost
Cost Equivalent Cost/unit Ending WIP Transferred
Units Cost Allocated Units Cost Allocated
Material $               50.00                   1,220 $              61,000 $            20,740 $       10,37,000
Conversion Cost $               25.00                       488 $              12,200 $            20,740 $          5,18,500
TOTAL $       16,28,700 TOTAL $              73,200 TOTAL $       15,55,500

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