Toronto Manufacturing Inc. has the following cost and production data for the month of November.
Beginning WIP ............................ 18,000 units
Started in production ..................... 100,000
Completed production .................... 94,000
Ending WIP ................................ 24,000
The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of process. Costs pertaining to the month of November are as follows:
Beginning inventory costs are:
Materials ................................... $ 65,000
Direct labour .............................. 20,000
Factory overhead ........................ 15,000
Costs incurred during November include:
Materials ................................. $550,000
Direct labour ............................ 195,000
Factory overhead ....................... 380,000
Instructions
(a) Calculate equivalent units of production for materials and for conversion costs.
(b) Determine the unit costs of production.
(c) Show the assignment of costs to units transferred out and in process.