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Question - O Solo Mio Co. uses process costing and has the following information:
Materials
Conversion
Units completed
10,000
Units in ending WIP:
DM: 6,000 x 40% complete
2,400eu
--------
CC: 6,000 x 30% complete
1,800eu
Total EU of output
12,400eu
11,800eu
Unit costs were $2.20 per unit for materials and $1.50 per unit for conversion.
Required -
1. What is the cost allocated to ending inventory?
2. Determine the cost allocated to goods completed and transferred out.
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