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23 February, 21:20

Materials costs of $600,000 and conversion costs of $642,600 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8,000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?

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  1. 23 February, 21:30
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    Answer:Manufacturing costs assigned to completed units = $1143192

    Explanation:

    Material Costs = $600 000 (added at the beginning)

    Conversion costs = $642600 incurred uniformly through out the process

    Units Started = 100 000

    Units on hand = 8000 units 40% complete

    Units completed = 100 000 - 8000 = 92000 units

    Percentage of units completed = 92000/100 000 = 92%

    Material costs = $600 000 x 92% = $552000

    Conversion Costs = $642 600 x 92% = $591192

    Manufacturing costs assigned to completed = $552000 + $591192

    Manufacturing costs assigned to completed units = $1143192
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