Crane Company has gathered the following information.
Units in beginning work in process 0
Units started into production37,300
Units in ending work in process8,200
Percent complete in ending work in process:
Conversion costs40%
Materials100%
Costs incurred:
Direct materials$78,330
Direct labor$66,500
Overhead$105,114
1. Compute equivalent units of production for materials and for conversion costs.
Materials
Conversion Costs
The equivalent units of production
2. Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
Unit costs
$
$
3. Show the assignment of costs to units transferred out and in process.
Units transferred out $
Units in ending work in process

Equivalent units of Materials: (Units in Beginning Work in process + Units started into production - Units in ending work in process) + Units in ending work in process

= (0 + 37,300 - 8,200) + 8,200

= 37,300

Equivalent units of conversion costs : (Units in Beginning Work in process + Units started into production - Units in ending work in process) + (Units in ending work in process * 40%)

= (0 + 37,300 - 8,200) + (8,200 * 40%)

=29,100 + 3,280

= 32,380

2. Determine the unit costs of production

Unit costs of materials = Direct materials / Equivalent units of Materials

= $78,330 / 37,300

= $2.1

Unit costs of conversion costs = (Direct labor + Overhead) / Equivalent units of conversion costs

= ($66,500 + $105,114) / 32,380

= $171,614 / 32,380

= $5.3

3. Show the assignment of costs to units transferred out and in process

Units ending work in process = Materials + Conversion costs

where, Materials = 8,200 * $2.1 = $8,202

Conversion costs = 3,281 * $5.3 = $17,389

( 8,200 * 40%)

Units ending work in process = $8,202 + $17,389

= $25,591