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Royal, Inc The Unit Cost Was Computed as Follows  Materials £5.00 Conver sion cost  Total cost per unit £8.00\begin{array}{ll}\text { Materials } & £ 5.00 \\\text { Conver sion cost } & \\\text { Total cost per unit } & £ 8.00 \\\end{array}

Question 35

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Royal, Inc., manufactures products that pass through two or more processes. The company uses the weighted average method to compute unit costs. During April, equivalent units were computed as follows:  Materials  Conversion Cost  Units completed 90,00090,000 Units in EWIP × Fraction complete:  Materials (4,000×100%)4,000 Conversion (4,000×30%)1,200‾ Equivalent units of output 94,000‾91,200\begin{array}{lcc}&\text { Materials }&\text { Conversion Cost }\\\text { Units completed } & 90,000 & 90,000 \\\text { Units in EWIP } \times \text { Fraction complete: } & & \\\text { Materials }(4,000 \times 100 \%) & 4,000 & \\\text { Conversion }(4,000 \times 30 \%) && \underline{1,200} \\\text { Equivalent units of output } & \overline{94,000} & 91,200\end{array}
The unit cost was computed as follows:  Materials £5.00 Conver sion cost  Total cost per unit £8.00\begin{array}{ll}\text { Materials } & £ 5.00 \\\text { Conver sion cost } & \\\text { Total cost per unit } & £ 8.00 \\\end{array}
a.Determine the cost of the goods transferred out.
b.Determine the cost of ending work in progress.

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a Cost of goods transferred out blured image

b. Cos...

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