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Trek Company has the following production data for April: units transferred out 41,400, and ending work in process 5,620 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $6 and unit conversion cost is $10. Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Respuesta :

Answer and Explanation:

The computation of the cost assigned is given below:

For units transferred out

= 41,400 units × ($6 + $10)

= $662,400

For ending work in units

= 5,620 units × $6 + 5,620 units × 40% × $10

= $33,720 + $22,480

= $56,200

Hence, the  costs to be assigned to the units transferred out and the units in ending work in process is $662,400 and $56,200 respectively

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