Referee Company manufactures tape dispensers.Its Assembly department had the following output and costs: Units started and completed $\quad 70,000$
$\begin{array} { l l } \text { Started and in process } & 10,000 \end{array}$ These units had all materials added but were only 60% completed for conversion costs.Direct materials costs were $480,000; conversion costs were $240,000.The total cost of units completed and transferred to Finishing is _____.

Question

Quizplus · Accepted Answer

The total cost of units completed and transferred to Finishing is calculated by adding the direct materials costs to the conversion costs. The direct materials costs are $480,000. For conversion costs, since all units started were completed, we consider the full conversion costs of $240,000. However, the units in process at the end, which are not fully completed, should not fully impact the total cost for completed units. Given that these in-process units are only 60% complete for conversion, we adjust the conversion costs for these in-process units. The calculation for the total cost involves considering the full costs for completed units and adjusting for the in-process units' stage of completion.

Referee Company Manufactures Tape Dispensers 70,000\quad 70,00070,000 Started and in process 10,000\begin{array} { l l } \text { Started and in process } & 10,000 \end{array} Started and in process ​10,000​

Referee Company Manufactures Tape Dispensers $\quad 70,000$ $\begin{array} { l l } \text { Started and in process } & 10,000 \end{array}$