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The Painting Department of Sammy Davis Company has the following production and manufacturing cost data for September. The company applies Weighted Average.
Production:
Beginning inventory 8,000 units that are 100% complete as to materials and 40% complete as to conversion costs; units started into production 27,000; ending inventory of 12,000 units that are 20% complete as to conversion costs.
Manufacturing Costs:
Beginning work in process inventory of $40,000, comprised of $30,000 of materials and $10,000 of conversion costs. Materials added during the month, $110,000; labor and overhead applied during the month, $62,000 and $55,000, respectively. Problem 1: Determine the costs to be assigned to the units transferred out and ending work in process. Problem 2: Compute the unit costs for materials and conversion costs.
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