Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
1. The cost assigned to units completed and transferred out based on equivalent units for Indigo Company is $720,000.
2. The cost assigned to the units in ending work in process inventory based on equivalent units for Indigo Company is $51,120.
What are equivalent units?
Equivalent units show the weighted average value of work done on uncompleted processes or jobs.
Equivalent units are computed by multiplying the degree or percentage of completion by the physical units.
Data and Calculations:
Materials Conversion Costs
Unit costs $5 $7
Units transferred out 60,000 60,000
Degree of completion 100% 100%
Cost of units transferred out $300,000 ($5x60,000) $420,000 ($7x60,000) = $720,000
Ending inventory 7,200 (100%) 2,160 (30%)
Cost of ending inventory $36,000 ($5x7,200) $15,120 ($7x2,160) = $51,120
Thus, the cost of units transferred out is $720,000 and the cost of ending inventory is $51,120.
Learn more about equivalent units at https://brainly.com/question/16259709
#SPJ1
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.