Information for illustration Wor - in - ProcessMarch 01 - 20,000Units Direct Materials: 100%Complete, Cost of* Conversion 10%Complete, Cost of* Balance in Work in Process, March 01*
Amount
$50,000 $7,200 $57,200
30,000
Unit s
Units Completed During March and Transferred out of the Cutting Department
40,000
Unit s
Work - in - Process,March 31 Direct Materials: 100%Complete Conversion 50%Complete
10,000 ??? ???
Costs Incurred During March: Direct Material
$90,000
Units Started During March
Conversion Costs: Direct Labor Applied Manufaturing Overhead** Total Conversion Costs * TheseCosts were incurred during the period month, February ** (Predetermined overhead Rate) * (Direct Labor Cost) = 125%* 86,000= $ 107,500
$86,000 $107,500 $193,50 0
Unit s