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4 October, 20:41

Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 44,400 Units in ending work in process 8,200 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $79,920 Direct labor $65,500 Overhead $110,186Instructions (a) Compute equivalent units of production for materials and for conversion costs. (b) Determine the unit costs of production. (c) Show the assignment of costs to units transferred out and in process.

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  1. 4 October, 21:02
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    Materials Conversion Cost

    Units transferred out = (44,400-8,200) = 36,200 36,200

    Units in ending work in progress (8200*40%) 8200 3280

    equivalent units of production 44,400 39,480

    b)

    Units cost of production

    Costs incurred (65,500+110,186) 79,220 175,686

    units of production 44,400 39,480

    1.78 4.45

    C)

    Units transferred out = 36,200 * 1.78 = 64,436

    36,200*4.45 = 161,090

    225,526

    Units in ending work in progress - (8200*1,78) + (3280*4.45)

    =14,596+14,596 = $29,192
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