Answer to Question #300038 in Accounting for Efti

Question

The Mixing Department of Crown Cement has the following cost and production data for

the month of June. [10]

Costs:

Work in process, June 1

Direct materials: 100% complete

Conversion costs: 20% Complete

$90,000

60,000

Cost of work in process, June 1 150,000

Costs incurred during production in June

Direct materials

Conversion costs

$600,000

280,000

Costs incurred in April 880,000

Units transferred put totaled 15,000. Ending work in process was 1200that are 100%

complete as to material and 40% complete as to conversion costs.

Instructions

a. Compute the equivalent units of production for (1) materials and (2)

conversion costs for the month of June. [4]

b. Compute the unit costs for the month. [3]

c. Determine the costs to be assigned to the units transferred out and in ending

work in process.

Answer 1

a.

$equivalent units materials=1\times600 000=600 000$

$conversion costs=280 000\times0.4=112000$

b.

$\frac{600 000}{15000}=40$

$\frac{112000}{1200}=93.33$

c.

$150 000+1\times600 000+280 000\times0.4=862 000$

put totaled=15000+1200=16200