Question

Cost of Units Completed and in Process

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in Process—Assembly Department
Bal., 7,000 units, 55% completed	17,815	To Finished Goods, 161,000 units	?
Direct materials, 165,000 units @ $1.5	247,500
Direct labor	235,800
Factory overhead	91,700
Bal. ? units, 60% completed	?

Cost per equivalent units of $1.50 for Direct Materials and $2.00 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period.	$
2. Cost of units transferred to finished goods during the period.	$
3. Cost of ending work in process inventory.	$
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent.	$

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				7,000
Add: Units Started in Process				165,000
Total Units to account for:				172,000
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				7000
Units started and completed				154,000
Ending Work in Process				11,000
Total Units to be accounted for:				172,000
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			0%	0	45%	3,150
Units started and completed			100%	154,000	100%	154,000
Ending Work in Process			100%	11,000	60%	6,600
Total Equivalent units				165,000		163,750
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			247,500		327,500
Equivalent Units			165,000		163,750
Cost per Equivalent unit			1.5		2
TOTAL COST ACCOUNTED FOR:
Units Completed from Beginning WIP (7000 units)
			Equivalent unit	Cost per EU	Total Cost
Beginning Cost					20550
Material			0	1.5	0
Conversion Cost			3,150	2	6300
Cost of units completed from Beg WIP					26850
Units started and Transferred out (154000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			154,000	1.5	231000
Conversion Cost			154,000	2	308000
Total Cost of Units completed and transferred out:					539000
Ending Work in process (11,000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			11,000	1.5	16500
Conversison Cost			6,600	2	13200
Total cost of Ending Work in process:					29,700
Cost of beginng WIP completed					26850
Cost of units transfrred to FG (26850+539000)					565850
Cost of ending WIP					29700
Cost per unit of beginning WIP (26850/7000)					3.84