On August 1,Jones Corporation's Packaging Department Had Work in Process

Essay

On August 1,Jones Corporation's Packaging Department had work in process inventory of 8,000 units that were 75% complete with respect to materials and 30% complete with respect to conversion costs.The cost of these units was $99,525 ($62,000 transferred-in from previous departments,$28,775 in materials,and $8,750 in labor and overhead).During August,125,000 units were transferred into the department.These units had accumulated costs in previous departments of $1,418,560.The packaging department incurred costs of $799,225 for materials and $498,010 for conversion costs in August and transferred 131,000 units out of the department.The 2,000 units remaining in ending inventory are 50% complete with respect to materials and 20% complete with respect to conversion costs.Jones uses the average cost method to cost its inventories.
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(a)Calculate the cost per equivalent unit for transferred-in costs,materials,and conversion costs.
(b)Calculate the cost of the units transferred out of the department.
(c)Calculate the cost of the ending inventory.