Ask Question
4 May, 17:17

The Mixing Department of Healthy FoodsHealthy Foods had 65 comma 00065,000 equivalent units of materials for OctoberOctober. Of the 65 comma 00065,000 units, 40 comma 00040,000 units were completed and transferred to the next department, and 25 comma 00025,000 units were 2020 % complete. Healthy Foods'sHealthy Foods's costs per equivalent unit of production are $ 0.75$0.75 for direct materials and $ 0.55$0.55 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted-average method. Calculate the cost of the 40 comma 00040,000 units completed and transferred out and the 25 comma 00025,000 units, 20 %20% complete, in the ending Work-in-Process Inventory.

+1
Answers (1)
  1. 4 May, 19:07
    0
    Cost of completed and transferred out is $52,000, and ending Work in Process is $21,500

    Total Cost accounted for Direct Materials is $48,750 and Conversion Cost is $24,750

    Explanation:

    The objective is to calculate the cost of the 40,000 units completed and transferred out and transferred out 25,000 units, 20 % complete in the ending work-in-process inventory.

    Tasty Foods

    The Production Cost Report - Mixing Department of Healthy Foods

    Month Ended - (October 31st)

    Cost Transferred Direct Conversion Total

    In Materials Cost Costs

    Cost

    accounted (40,000 * $0.75) (40,000 * $0.55)

    for: N/A = $30,000 = $22,000 $52,000

    Ending work

    in process N/A (25,000 * $0.75) (25,000*20% * $0.55)

    = $ 18,750 = $2,750 $21,500

    Total cost

    accounted for N/A $48,750 = $24,750 $73,500

    Thus, Cost of completed and transferred out is $52,000, and ending Work in Process is $21,500

    Total Cost accounted for Direct Materials is $48,750 and Conversion Cost is $24,750
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Mixing Department of Healthy FoodsHealthy Foods had 65 comma 00065,000 equivalent units of materials for OctoberOctober. Of the 65 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers