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

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police