Reference no: EM132691986

Unit Cost and Cost Assignment, Nonuniform Inputs

Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September:

                                                                              Materials                    Conversion

Units completed                                             180,000                    180,000

Add: Units in ending WIP x Fraction complete.       60,000                      37,800

(60,000 x 63%)

Equivalent units of output                                     240,000                  217,800

Costs:

Work in process, September 1:

Materials $147,000

Conversion costs 7,875

Total $154,875

Current costs:

Materials $1,204,000

Conversion costs 480,970

Total $1,684,970

Required:

Problem 1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. If required, round your answers to the nearest cent.

Unit materials cost$

Unit conversion cost$

Total unit cost$

Problem 2. Calculate the cost of units transferred out and the cost of EWIP. Round unit cost value to the nearest cent in intermediate calculations. If required, round final answers to the nearest dollar.