Answered Essay: ylor Ski Company manufactures snow skis. During the most recent accounting period, the company’s finishin

Taylor Ski Company manufactures snow skis. During the most recent accounting period, the company’s finishing department transferred 4,300 sets of skis to finished goods. At the end of the accounting period, 480 sets of skis were estimated to be 60 percent complete. Total product costs for the finishing department amounted to $344,100.
a. Determine the cost per equivalent.


b.&c. Determine the cost of the goods transferred out of the finishing department and the cost of the finishing department’s ending work in process inventory.
To finished goods-?

To ending inventory- ?

Expert Answer


No fo finished units transferred 4,300 units
Ending inventory units (60% complete) 480 units
Equivalent units of Ending inventory (480*60%) 288 units
Cost per equivalent unit
A Total no of equivalent units (4,300+288)               4,588 units
Total cost $344,100
Cost of equivalent unit ($344,100/4588) $75
Cost of Finished goods
Cost per equivalent unit $75
No of units finished and transferred 4,300 units
Cost of finished goods ($75*4,300) $322,500
Cost of Ending inventory
Cost per equivalent unit $75
Equivalent units of Ending inventory (480*60%) 288 units
Cost of finished goods ($75*288) $21,600
Cost of finished goods ($75*4,300) $322,500
Cost of finished goods ($75*288) $21,600
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