Cost of the units completed


Problem:

Ace chemical company manufatures a liquid used to was boats. ace began 2011 with 10,000 units in process with cost of $12000 for materials and $162,000 for materials and labor. all materials are added at the start of production and materials and labor are added at a consistent rate during production. 90,000 unts are added to productiong during the period, and 80,000 completed. the cost of the added units was $96,000 for materials and $180,000 for conversion costs. the uncompleted units are 50% completed as to conversion costs.

Required:

Question 1: What is the cost of the units completed? why?

Question 2: What is the cost of the units not completed? why?

Note: Please show the work not just the answer.

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Accounting Basics: Cost of the units completed
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