Choco Nibbles produces low calorie chocolate snacks. The Baking Department has the following production and manufacturing cost data for January.

Production: Beginning inventory has 2,200 boxes of Nibbles that are 100% complete as to materials and 30% complete as to conversion costs. A total of 38,000 boxes were started into production. Ending inventory of 3,500 boxes are 40% complete as to conversion costs.

Manufacturing Costs: Beginning work in process inventory was $7,845, comprised of $3,160 of materials and $4,685 of conversion costs. Materials added during the month were $29,000, with labor and overhead applied during the month totaling $19,000 and $16,320, respectively.

Instructions (a) Compute the equivalent units of production for materials and conversion costs for the month of January.

(b) Compute the unit costs for materials and conversion costs.

(c) Determine the costs to be assigned to the units transferred out and ending work in process

Answer rating: 100% (QA)

Answer a To compute the equivalent units of production for materials and conversion costs for the month of January we need to consider the units in be... View the full answer