Kramer Company Started Its Production Operations on August 1

Essay

Kramer Company started its production operations on August 1. During August, the printing department completed 17,600 units. There were 4,400 units in ending inventory which were 80% complete with respect to materials and 10% complete with respect to conversion costs. During August, the department accumulated materials costs of $45,408 and conversion costs of $76,670.
Required:
a. Calculate the cost of the goods transferred out.
b. What is the value of the ending inventory?
Round intermediate computation to nearest cent.
Cost per equivalent unit for materials = $45,408 / (17,600 + (.80)*(4,400)) = $2.15
Cost per equivalent unit for conversion costs = $76,670 / (17,600 + (.10)*(4,400))= $4.25