Question - Process Cost Accounting
The Painting Department of Shore Manufacturing Company has the following production and manufacturing cost data for September.
Production: Beginning inventory 8,000 units that are 100% completed as the materials ad 40% completed as to conversion cost; units started into production 27,000, ending inventory of 12, 000 units are 20% complete as to conversion costs.
Manufacturing Cost: Beginning work in process inventory of $40,000, comprised of $30,000 of material and $10,000 of conversion cost. Materials added during the month, $110,000; labor and overhead applied during the month, $62,000 and $55,000, respectively.
Questions -
1. Compute the equivalent units of production for materials and conversion costs for the month of September.
2. Compute the unit costs for materials and conversion costs.
3. Determine the costs to be assigned to the units transferred out and ending work in process.