Problem:
Use the following information to answer questions below. For January, a firm's equivalent units of production for materials and conversion costs are 20,000 and 16,000, respectively. The total cost of materials used during the month is $64,000, and conversion costs are $80,000. Materials costs and conversion costs in the beginning Work in Process Inventory totaled $12,000 and $16,000, respectively. Ending Work in Process Inventory is 4,000 units, 100% complete as to materials and 20% complete as to conversion costs. (The firm uses the average costing approach).
Q1. The cost per equivalent unit as to materials is:
Q2. The cost per equivalent unit as to conversion costs is:
Q3. The cost of ending Work in Process Inventory as to conversion costs is:
Q4. The cost of goods transferred to Finished Goods Inventory is: