Determine equivalent units, unit cost, and assignment of cost
The blending Department of Ceja Company has the following cost and production data for the month of May.
|
Work in process May 1 |
|
|
Direct materials: 100% complete |
100,000 |
|
Conversion costs: 20% complete |
75,000 |
|
Cost of work in process, May 1 |
175,000 |
|
Costs incurred during production in May |
|
|
Direct materials |
800,000 |
|
Conversion costs |
350,000 |
|
Cost incurred in May |
1,150,000 |
Units transferred out totaled 8,000. Ending work in process was 2,000 units that are 100% complete as to materials and 25% complete as to conversion costs.
Instructions
a. Computer the equivalent units of production for (1) materials and (2) conversion cost for the month of May.
b. Compute the unit costs for the month.
c. Determine the cost to be assigned to the units transferred out and in ending work in process.