Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 44,000 44,000 Units in Ending Work in Process: Direct Materials (9,000 * 100%) 9,000 Conversion (9,000 * 70%) 6,300 Equivalent Units of Production 53,000 50,300 Cost per Equivalent Unit Costs of beginning work in process $43,400 $63,700 Costs incurred this period 145,100 195,100 Total costs $188,500 $258,800 Cost per equivalent unit $3.56 per EUP $5.15 per EUP The total conversion costs transferred out of the Canning Department equals:.a. $156,640. b. $179,068. c. $188,500.

Material Costs Transferred Out      $ 156,640

Conversion Costs Transferred Out      $ 226355

Explanation:

Mitchell Manufacturing

Canning Department.

Equivalent Units of Production

                                                        Direct Materials    Conversion

Units Completed and transferred out 44,000               44,000

Units in Ending Work in Process:

Direct Materials (9,000 * 100%)             9,000

Conversion (9,000 * 70%)                                                      6,300

Equivalent Units of Production            53,000                   50,300

Cost per Equivalent Unit

Costs of beginning work in process $43,400                  $63,700

Costs incurred this period                 145,100                   195,100

Total costs                                        $188,500                 $258,800

Cost per equivalent unit               $3.56 per EUP         $5.15 per EUP

The total conversion costs = $ 258,800

Less Conversion Costs of Ending Inventory= ( 6300 * 5.15)= 32445

Conversion Costs Transferred Out      $ 226355

The Total Material Costs      $188,500  

Less Material Costs of Ending Inventory= ( 9000 * 3.56)= 32040

Material Costs Transferred Out      $ 156,640

It can also be solved by multiplying EUP with the Units Completed and transferred out and we will get the same results.

Material Costs Transferred Out   ( 44000*3.56)   $ 156,640

Conversion Costs Transferred Out   ( 44000*5.15)    $ 226355