Question

The Fitting Department’s cost per equivalent unit for conversion cost for March was $6.01. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

Answer 1

To calculate the total conversion cost for units transferred out of the Fitting Department in March, the cost per equivalent unit is multiplied by the number of equivalent units transferred out. The cost per equivalent unit is given as $6.01, but without the actual number of units, we cannot complete the calculation.

Step-by-step explanation:

To determine how much conversion cost was assigned to the units transferred out of the Fitting Department during March, we need two pieces of information: the cost per equivalent unit for conversion cost, which is provided as $6.01, and the number of equivalent units processed and transferred out during that month. Without the actual number of equivalent units transferred out, we cannot compute the total conversion cost. However, if we had that number, we would multiply it by the per-unit cost to find the total conversion cost.

For example, if 5,000 units were transferred out, the total conversion cost would be calculated as follows:

Total Conversion Cost = Number of Units Transferred Out × Cost Per Equivalent Unit
Total Conversion Cost = 5,000 × $6.01
Total Conversion Cost = $30,050.00

Answer 2

units transferred to the next department = units in beginning wip + units started into production - units in ending wip

= 8400 + 52800 - 3700

= 57,500 units

Units completed and transferred out : Conversion

Units transferrd to the next deptt 57,500

cost per unit $9.56

Cost of units completed and transferred out $549,700