Question

Lo-crete produces quick setting concrete mix. Production of 200,000 tons was started in April, 190,000 tons were completed. Material costs were $3,152,000 for the month while conversion costs were $591,000. There was no beginning work-in-process; the ending work-in-process was 70% complete. What is the cost of the product that was completed and transferred to finished goods

Answer 1

Answer:

$3,564,400

Explanation:

Equivalent units of Production

Materials = 190,000 + 10,000 = 200,000

Conversion cost = 190,000 + 10,000 x 70% = 197,000

Cost per equivalent units

Materials = $3,152,000 / 200,000 =$15.76

Conversion Cost = $591,000 / 197,000 =$3.00

Total cost per unit = $18.76

Therefore,

the cost of the product that was completed and transferred to finished goods is $3,564,400 ( 190,000 x $18.76)