Information for the month of May concerning Department A, the first stage of the production cycle, is as follows:
Materials Conversion Costs
Beginning work in process $ 7,200 $ 6,000
Current costs $27,800 $16,050
Material costs $35,000 $22,050
Equivalent units based on average cost method
10,000 9,800
Goods completed 9,000 units
Ending work in process 1,000
Material costs are added at the beginning of the process. The ending work in process is 80 percent complete as to conversion costs. How would the total costs accounted for be distributed using the average cost method?
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