Materials costs of $300,000 and conversion costs of $321,300 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8,000 units in ending work in process that were 40% complete at the end of September.
What was the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process?
$10,800.
$20,400.
$34,800.
$24,000.
$34,800.
$24000
To determine the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process, we need to calculate the equivalent units of production for both materials and conversion costs.
First, let's calculate the equivalent units for materials. Since materials are added at the beginning of the process, the equivalent units for materials will be the same as the number of units in the ending work in process, which is 8,000 units.
Next, let's calculate the equivalent units for conversion costs. Conversion costs are incurred uniformly throughout the process, so we need to calculate the percentage of completion for the ending work in process. Given that the ending work in process is 40% complete, we multiply the 8,000 units by 40% to get 3,200 equivalent units for conversion costs.
Now, we can calculate the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process by adding the total materials costs and total conversion costs assigned.
Total materials costs = Materials costs per equivalent unit * Equivalent units for materials
Total materials costs = $300,000 * 8,000 units = $2,400,000
Total conversion costs = Conversion costs per equivalent unit * Equivalent units for conversion costs
Total conversion costs = $321,300 * 3,200 units = $1,027,200
Finally, we add the total materials costs and total conversion costs to get the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process.
Total manufacturing costs = Total materials costs + Total conversion costs
Total manufacturing costs = $2,400,000 + $1,027,200 = $3,427,200
Therefore, the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process is $3,427,200.