EB9. LO 5.4 Production data show 15,200 units were transferred out of a stage of production and 3,500 units remained in ending WIP inventory that was 100% complete to material and 60% complete to conversion. The unit material cost is $9 for material and $4 for conversion. What is the amount of inventory transferred out and remaining in ending work in process inventory?

Solution

	Material	Conversion
Percent complete	100%	60%
Cost per unit	9	4
	Units	Materials	Conversion
Transferred out	15,200	15,200	15,200
Ending inventory	3,500	3,500	2,100
Equivalent units		18,700	17,300
Transferred out		$197,600
Ending work in process: materials	$31,500
Ending work in process: conversion	$8,400
Ending work in process: total		$39,900
Costs to account for		$237,500

Computations

Ending inventory 3,500 $9 = $31,500 Plus 2,100 $4 = $8,400 = $39,900

Materials Conversion

Transferred out 15,200 $9 = $136,800 Plus 15,200 $4 = $60,800 = $197,60