Problem - The blending department of Luongo company has the following cost and production data for the month of April Costs:
Work in process, April 1
Direct materials; 100% complete $100,000
conversion costs: 20% complete 70,000
Cost of work in process, April 1 =$170,000
Costs incurred during production in April
Direct materials $800,000
Conversion cost 365,000
Costs incurred in April =$ 1,165,000
Units transferred out totaled 17,000. Ending work in process was 1,000 units that are %100 compl to materials and 40% compl as to conversion costs
Instructions -
(a) Compute the equivalent units of production for (1) materials and (2) conversion costs for the month.
(b) Compute the unit costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in ending work in process.