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

Required:
1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September.
2. Calculate the cost of units transferred out and the cost ofEWIP.

Transcribed Image Text:

Materials Conversion Units completed Add: Units in ending WIP Equivalent units of output 180,000 180,000 60,000 240,000 216,000 Fraction complete (60,000 × 60%) 36,000 Costs Work in process, September 1 Materials Conversion costs S147,000 7,875 $154,875 Total Current costs: Materials Conversion costs $1,053,000 236,205 $1,289,205 Total