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Current Attempt in Progress Sunland Instrument Company uses a process costing system. A unit of product passes through three departments-moulding, assembly, and finishing-before it is
Current Attempt in Progress Sunland Instrument Company uses a process costing system. A unit of product passes through three departments-moulding, assembly, and finishing-before it is completed. The following activity took place in the finishing department during May: Work in process inventory, May 1 Transferred in from the assembly department Completed and transferred out to finished goods inventory Units 1,900 14,600 12,000 Raw material is added at the beginning of processing in the finishing department. The work in process inventory was 70% complete in terms of conversion costs on May 1 and 40% complete in terms of conversion costs on May 31. Sunland Instrument Company uses the weighted average method. The equivalent units and current period costs per equivalent unit of production for each cost factor are as follows for the finishing department: Transferred-in costs Raw materials Conversion costs Total Equivalent Units 15,050 15,050 13.500 Current Period Costs per Equivalent Unit $6.00 2.20 4.20 $12.40 Calculate the following amounts: (a) The cost of units transferred to finished goods inventory during May Cost of units transferred to finished goods inventory $
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