Refresh produces soft drinks and sodas. Production of 100,000 liters was started in February, 85,000 liters were completed. Material costs were $38,220 for the month while conversion costs were $16,380. There was no beginning work-in-process; the ending work-in-process was 40% complete. What is the cost of the product that was completed and transferred to finished goods?

$51,000

Explanation:

Equivalent production = 85,000 + [40% × (100,000 - 85,000)] = 91,000 units. Given.

Total Production = 100,00 litres

Completed = 85,000

Material Cost = $38,220

Conversion Cost = 16,380

Beginning work process = 0

End work process = 40%

Uncompleted Production = 100,000 - 85,000 = 15,000

Total Cost = 38,220 + 16,380 = 54,600

First we Calculate the Total Units of Production

This is given by:

Total Units of Production = Completed Production + [40% × (Uncompleted Production)] =

Total Units of Production = 85,000 + [40% × (15,000)]

Total Units of Production = 91,000 units.

Calculating Cost per unit = Total Cost/Total Units

Cost per unit = ($38,220 + $16,380)/91,000

Cost Per Unit = $0.60;

Cost Transferred = Materials Cost * Cost Per Unit

Costs Transferred = 85,000 × $0.60 = $51,000

answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12

answer decisions made by individual households and firms;