Exercise 16-18

The Smelting Department of Polzin Company has the following production and cost data for September.

Production: Beginning work in process 1,900 units that are 100% complete to materials and 20% complete to conversion costs; units started and finished 8,000 units; and ending work in process 1,000 units that are 100% complete to materials and 40% complete to conversion costs.

Manufacturing costs: Work in process, September 1, $16,000; materials added $60,300; labor and overhead $120,032.

Polzin uses the FIFO method to compute equivalent units.

Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of September.

The equivalent units of production Materials_______ Conversion Costs_________

Compute the unit costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25.)

Unit costs$ Materials_______ Conversion Costs______

Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

Transferred out$ ____

Work in process$ _____