On August 1, Jones Corporation's Packaging Department had work in process inventory of 8,000 units that were 75% complete with respect to materials and 30% complete with respect to conversion costs. The cost of these units was $99,525
($62,000 transferred in from previous departments, $28,775 in materials, and $8,750 in labor and overhead). During August, 125,000 units were transferred into the department. These units had accumulated costs in previous departments of $1,418,560. The Packaging Department incurred costs of $799,225 for materials and $498,010 for conversion costs in August and transferred 131,000 units out of the department. The 2,000 units remaining in ending inventory are 50% complete with respect to materials and 20% complete with respect to conversion costs. Jones uses the average cost method to cost its inventories.
(a) Calculate the cost per equivalent unit for transferred-in costs, materials, and conversion costs
(rounded to the nearest cent).
(b) Calculate the cost of the units transferred out of the department.
(c) Calculate the cost of the ending inventory.

Question

On August 1, Jones Corporation's Packaging Department had work in process inventory of 8,000 units that were 75% complete with respect to materials and 30% complete with respect to conversion costs. The cost of these units was $99,525 
($62,000 transferred in from previous departments, $28,775 in materials, and $8,750 in labor and overhead). During August, 125,000 units were transferred into the department. These units had accumulated costs in previous departments of $1,418,560. The Packaging Department incurred costs of $799,225 for materials and $498,010 for conversion costs in August and transferred 131,000 units out of the department. The 2,000 units remaining in ending inventory are 50% complete with respect to materials and 20% complete with respect to conversion costs. Jones uses the average cost method to cost its inventories.​
(a) Calculate the cost per equivalent unit for transferred-in costs, materials, and conversion costs 
(rounded to the nearest cent).
(b) Calculate the cost of the units transferred out of the department.
(c) Calculate the cost of the ending inventory.

Quizplus · Accepted Answer

The Answer of On August 1, Jones Corporation's Packaging Department had work in process inventory of 8,000 units that were 75% complete with respect to materials and 30% complete with respect to conversion costs. The cost of these units was $99,525 
($62,000 transferred in from previous departments, $28,775 in materials, and $8,750 in labor and overhead). During August, 125,000 units were transferred into the department. These units had accumulated costs in previous departments of $1,418,560. The Packaging Department incurred costs of $799,225 for materials and $498,010 for conversion costs in August and transferred 131,000 units out of the department. The 2,000 units remaining in ending inventory are 50% complete with respect to materials and 20% complete with respect to conversion costs. Jones uses the average cost method to cost its inventories.​
(a) Calculate the cost per equivalent unit for transferred-in costs, materials, and conversion costs 
(rounded to the nearest cent).
(b) Calculate the cost of the units transferred out of the department.
(c) Calculate the cost of the ending inventory.

On August 1, Jones Corporation's Packaging Department Had Work in Process