Bertinoli's Company Makes Gadgets

question 119

Essay

Bertinoli's Company makes gadgets.The company uses process costing.All direct materials are introduced at the end of the process.Conversion costs are incurred evenly throughout the process.In February,there was no beginning Work-in-Process Inventory,but 490,000 units were started.At the end of February,there were 90,000 units still in process at the 70% level of completion.Total costs incurred during February were $1,212,500 for materials and $3,664,000 for conversion costs.
Required:
A) Compute the number of units completed and transferred.
B) Compute the equivalent units for materials and conversion costs.
C) Compute the cost per equivalent unit for materials and conversion costs. Round to two decimal places.
D) Compute the cost of the units completed and transferred.
E) Compute the cost of ending work-in-process inventory.

• A) Compute the number of units completed and transferred.
• B) Compute the equivalent units for materials and conversion costs.
• C) Compute the cost per equivalent unit for materials and conversion costs. Round to two decimal places.
• D) Compute the cost of the units completed and transferred.
• E) Compute the cost of ending work-in-process inventory.

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Definitions:

Time Limit

A fixed period or deadline by which a task must be completed or a decision must be made.

Patents

Legal rights granted to inventors allowing them the exclusive right to manufacture, use, or sell their invention for a certain period.

Trade Secret

Confidential business information that provides an enterprise with a competitive edge, and is protected by secrecy measures rather than formal intellectual property rights.

Intangible Item

An asset or resource that lacks physical substance but holds value, such as intellectual property or goodwill.