Cambridge Company manufactures plastic bottles that it sells to organizations that manufacture bottled water. During the most recent month, there was no opening inventory. During the month, 25 million bottles were entered into production and 24 million were completed The units in ending inventory were 100% complete with respect to materials costs and 60% complete with respect to conversion costs. During the month, materials costs were $500,000 and conversion costs were $246,000. Do not round intermediate calculations. a) What was the number of equivalent units work done for conversion costs this month? 24,600,000 b) What was the cost per equivalent unit of conversion cost this month? Round answer to three decimal places. $ 0.01 c) What is the cost that will be allocated to units completed and transferred out? Round answer to nearest whole dollar amount. $ 240,000 x d) What is the cost that will be allocated to ending work in process? Round answer to nearest whole dollar amount. $ 6,000 X

Cambridge Company manufactures plastic bottles that it sells to organizations that manufacture bottled water. During the most recent month, there was no opening inventory. During the month, 25 million bottles were entered into production and 24 million were completed The units in ending inventory were 100% complete with respect to materials costs and 60% complete with respect to conversion costs. During the month, materials costs were $500,000 and conversion costs were $246,000. Do not round intermediate calculations. a) What was the number of equivalent units work done for conversion costs this month? 24,600,000 b) What was the cost per equivalent unit of conversion cost this month? Round answer to three decimal places. $ 0.01 c) What is the cost that will be allocated to units completed and transferred out? Round answer to nearest whole dollar amount. $ 240,000 x d) What is the cost that will be allocated to ending work in process? Round answer to nearest whole dollar amount. $ 6,000 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cambridge Company manufactures plastic bottles that it sells to organizations that manufacture
bottled water. During the most recent month, there was no opening inventory.
During the month, 25 million bottles were entered into production and 24 million were completed
The units in ending inventory were 100% complete with respect to materials costs and 60% complete
with respect to conversion costs. During the month, materials costs were $500,000 and conversion costs were $246,000.
Do not round intermediate calculations.
a) What was the number of equivalent units work done for conversion costs this month?
24,600,000
b) What was the cost per equivalent unit of conversion cost this month? Round answer to three decimal places.
$ 0.01
c) What is the cost that will be allocated to units completed and transferred out? Round answer to nearest whole dollar amount.
$ 240,000
d) What is the cost that will be allocated to ending work in process? Round answer to nearest whole dollar amount.
$ 6,000
X

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