32) Gamma Lights Ltd. experienced the following activity in its Machining Department during September. Materials are added at the beginning of the machining process.
Units:
Work in process, September 1 (80% of the way through the process)
9,600 units
Transferred in from the Casting Department during September
32,400 units
Completed during September
? units
Work in process, September 30 (70% of the way through the process)
10,800 units
Costs:
Work in process, September 1 (transferred-in costs, $24,036; direct materials costs, $24,300; and conversion costs, $23,780)
$72,140
Transferred in from the Casting Department during September.
159,924
Direct materials added during September
89,100
Conversion costs added during September
108,004
Required:
1.Summarize flow of physical units and compute total equivalent units for three cost categories:
transferred-in, direct materials, and conversion costs.
2.Summarize total costs to account for and compute the cost per equivalent unit for each cost
category.
3.Assign total costs to (a) units completed and transferred to Finished Goods Inventory and
(b) units in September 30 Work in Process Inventory.
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