Kramer Company Started Its Production Operations on August 1

question 123

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

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Definitions:

Exemplification Tactics

Strategies used to serve as an example or role model in order to influence others' perceptions or behaviors positively.

Effective Behavior

Actions or conduct that result in the achievement of desired outcomes, goals, or objectives.

Voluntary Tasks

Activities chosen freely without coercion, often reflecting personal commitment or interest.

Impression Management

The process through which individuals attempt to control the perceptions or impressions others form of them, often to appear more favorable or competent.