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E3-11 Compute equivalent units, unit costs, and costs assigned The Polishing Department of Major Company has the following production and manufacturing cost data for September.
E3-11 Compute equivalent units, unit costs, and costs assigned | |||||||||||||
The Polishing Department of Major Company has the following production and manufacturing cost data for September. | |||||||||||||
Materials are entered at the beginning of the process. | |||||||||||||
Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to | |||||||||||||
conversion costs; units started during the period ar 42,900; ending inventory of 5,000 units 10% complete as to | |||||||||||||
conversion costs. | |||||||||||||
Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion | |||||||||||||
costs; material costs added in Polishing during the month, $175,800; labor and overhead applied in Polishing during the | |||||||||||||
month, $125,680 and $257,140, respectively. | |||||||||||||
Instructions | |||||||||||||
(a) | Compute the equivalent units of production for materials and conversion costs for the month of September. | ||||||||||||
(b) | Compute the unit costs for materials and conversion costs for the month. | ||||||||||||
(c ) | Determine the costs to be assigned o the units transferred out and in process. | ||||||||||||
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . | |||||||||||||
After you have completed the requirements of E3-11, consider this additional question. | |||||||||||||
1. | Assume that 3,750 units remained in ending work in process and total conversion costs added during September changed to $359,695. | ||||||||||||
Show the impact of this change on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule. | |||||||||||||
(Round calculation of cost per equivalent units to 3 decimal points.) | |||||||||||||
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