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Problem 6 Ten - Ten Corporation

Ten-Ten Corporation started 100,000 units, completed 90,000 units, and had 10,000 units still in process. The cost per unit for strawberry was $1.80, chocolate was $1.50, and conversion was $1.20. For the completed units, the total cost was $405,000. The remaining costs for incomplete units were $18,000 for strawberry, $0 for chocolate, and $8,400 for conversion, totaling $26,400.

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272 views1 page

Problem 6 Ten - Ten Corporation

Ten-Ten Corporation started 100,000 units, completed 90,000 units, and had 10,000 units still in process. The cost per unit for strawberry was $1.80, chocolate was $1.50, and conversion was $1.20. For the completed units, the total cost was $405,000. The remaining costs for incomplete units were $18,000 for strawberry, $0 for chocolate, and $8,400 for conversion, totaling $26,400.

Uploaded by

gazer beam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Problem 6 Ten – Ten Corporation

Actual Strawberry Chocolate Conversion


1. Units started 100,000 WD EP WD EP WD EP
Completed 90,000 100% 90,000 100% 90,000 100% 90,000
In process, end 10,000 100% 10,000 70% 7,000
100,000 100,000 90,000 97,000

2. Unit cost
Strawberry = 180,000/100,000 = 1.80
Chocolate = 135,000/90,000 = 1.50
Conversion = 116,400/97,000 = 1.20
4.50

3. Completed & transferred (90,000 X 4.50) 405,000

4. In process, end
Strawberry (10,000 X 1.80) 18,000
Chocolate -
Conversion ( 7,000 X 1.20) 8,400
26,400

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