What is the unit cost of each model transferred

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Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice, Hiker, and Expert. MOE manufactures the tents in two departments: Stitching and Customizing. All four models are processed initially in Stitching where all material is assembled and sewn into a basic tent. The Rookie model is then transferred to finished goods. After processing in Stitching, the other three models are transferred to Customizing for additional add-ons, and then transferred to finished goods.

There were no beginning work-in-process inventories on August 1. Data for August are shown in the following table. Ending work in process is 45 percent complete in Stitching and 35 percent complete in Customizing. Conversion costs are allocated based on the number of equivalent units processed in each department.

  Total Rookie Novice Hiker Expert
Units started         700     500     310     270  
Units completed in Stitching         650     465     260     225  
Units completed in Customizing               445     240     215  
Materials $ 66,650   $ 24,500   $ 18,500   $ 9,610   $ 14,040  
Conversion costs:                              
Stitching $ 57,260                          
Customizing   28,000                          
Total conversion costs $ 85,260                          

Required:

a. What is the unit cost of each model transferred to finished goods in August? 

b. What is the balance of the Work-in-Process Inventory on August 31 for Stitching? For Customizing?

Reference no: EM131780014

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