Reference no: EM132618857

The Skate Board Company uses a process cost system for making skateboard wheels. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September the work-in-process is 40 percent completer and at the end of the month it is 60 percent complete. Spoilage is detected at the end of the process.

Other data for the month include:

Beginning work-in-process inventory 1,600 units

Units started 20,000 units

Units placed in finished goods 12,000 units

Ending work-in-process inventory 1,200 units

Normal spoilage % on all units finished 20 percent

Conversion costs $40,320

Cost of direct materials $40,000

Beginning work-in-process costs:

Materials $4,000

Conversion $4,032

Problem a. calculate number of equivalent units?

Problem b. calculate each cost of equalivent units?

Problem c. calculate cost of total units transferred out?

Problem d. calculate cost of ending inventory?