Ben’s Brushes Inc. manufactures electric toothbrushes. The brushes are manufactured in 2 sequential processes: Interior and Assembly. Information related the Interior Department for the month of October can be summarized as follows:

Interior Department:

• Beginning units: 3,900 – 70% completed
• Ending units: 3,000 – 30% completed
• Units started this month: 9,000
• Direct materials costs in beginning WIP: $1,980
• Conversion costs in beginning WIP: $4,080
• Direct materials costs incurred this month: $13,500
• Conversion costs incurred this month: $24,000
• In the Interior Department, direct materials are added at the beginning of the process while conversion costs are added uniformly throughout the assembly process.

Instructions: Compute each of the following items, showing all work for partial credit. You do NOT have to put your answers in the blanks shown below.

Mater.       Conver. Costs

______      ______      1. Equivalent units for materials and conversion costs

______      ______      2. Costs per equivalent units for materials and conversion costs

______      ______ 3. Total cost assigned to unit transferred out

______      ______ 4. Total cost of ending work in process

Answer rating: 100% (QA)

Bens Brushes Inc Interior Department Costing Calculations 1 Equivalent Units Materials Beginning WIP3900 units 70 2730 equivalent units Units started9000 units Ending WIP3000 units 30 900 equivalent units Total Material Equivalent Units 2730 9000 900 12630 Conversion Costs All units receive 100 of conversion costs since they are added uniformly Equivalent units for conversion costs Units started Ending WIP 9000 3000 12000 2 Costs per Equivalent Unit Materials Total material cost 1980 beginning WIP ... View the full answer