Exercise 16-11 (Part Level Submission)

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 1,730 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 46,900; ending inventory of 7,700 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $22,100 of materials and $38,332 of conversion costs; materials costs added in Polishing during the month, $220,077; labor and overhead applied in Polishing during the month, $127,100 and $258,240, respectively.

a. Compute the equivalent units of production for materials and conversion costs for the month of September.

The equivalent units of production

Materials:_________

Conversion Costs:_________

B.Compute the unit costs for materials and conversion costs for the month.

Cost per equivalent unit of material :

C.Determine the costs to be assigned to the units transferred out and in process.

Cost of units transferred out: