Managerial Accounts

Q-l General Company had total material costs totaling $105,000 and total conversion costs of $37,000. Equivalent units of production are 12,000 for materials and 5,000 for conversion costs. Calculate the unit costs for materials, conversion costs, and total manufacturing costs using the weighted-average method. 5 marks Solution Unit costs Materials Conversion Costs Total Costs Eguivalent units Unit costs A Company has the following production data for January: Transferred out 40,000 units Ending Work in Process 10,000 units Q-2 The units in ending Work in Process are 100% complete for materials and 60% complete for conversion costs. There is no beginning Work in Process. Materials cost is $10 per unit and conversion costs are $11 per unit. Determine the costs to be assigned to the units transferred out and the units in ending Work in Process. 5 marks Solution Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, Materials Conversion costs Total costs