The smelting department of Amber Manufacturing Company has the following production and cost data for September. Production: Beginning work in process of 2,000 units that are 100% complete in terms of materials and 20% com- plete in terms of conversion costs; 8,000 units started and finished; and 1,000 units in ending work in process that are 100% complete in terms of materials and 40% complete in terms of conversion costs. Manufacturing costs: Work in process, September 1, $15,200; materials added, $63,000; labour and overhead, $143,000. Amber uses the FIFO method to calculate equivalent units.
Instructions
(a) Calculate the equivalent units of production for
(1) Materials
(2) Conversion costs for the month of September.
(b) Calculate the unit costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in process.