Question

Equivalent Units of Production and Related Costs 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., 1,600 units, 35% completed 17,440 To Finished Goods, 29,600 units ? Direct materials, 29,000 units @ $9.50 275,500 Direct labor 84,600 Factory overhead 39,258 Bal. ? units, 45% completed ? Determine the following: a. The number of units in work in process inventory at the end of the period. 1,000 units Feedback Units in ending work in process represent units that have been started in the department but have not been completed, and therefore have not been transferred out to finished goods. b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Whole Units Equivalent Units Direct Materials Equivalent Units Conversion Inventory in process, beginning 1,600 0 1,040 Started and completed 28,000 28,000 28,000 Transferred to finished goods 29,600 Inventory in process, ending 1,000 1,000 450 Total units 30,600 Feedback c. Costs per equivalent unit for direct materials and conversion. Costs Per Equivalent Unit Direct Materials $ Conversion $ d. Cost of the units started and completed during the period. $

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				1,600
Add: Units Started in Process				29,000
Total Units to account for:				30,600
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				1600
Units started and completed				28,000
Ending Work in Process				1,000
Total Units to be accounted for:				30,600
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			0%	0	65%	1,040
Units started and completed			100%	28,000	100%	28,000
Ending Work in Process			100%	1,000	45%	450
Total Equivalent units				29,000		29,490
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			275,500		123,858
Equivalent Units			29,000		29,490
Cost per Equivalent unit			9.5		4.2
TOTAL COST ACCOUNTED FOR:
Units Completed from Beginning WIP (1600 units)
			Equivalent unit	Cost per EU	Total Cost
Beginning Cost					17440
Material			0	9.5	0
Conversion Cost			1,040	4.2	4368
Cost of units completed from Beg WIP					21808
Units started and Transferred out (28000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			28,000	9.5	266000
Conversion Cost			28,000	4.2	117600
Total Cost of Units completed and transferred out:					383600
Ending Work in process (1,000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			1,000	9.5	9500
Conversison Cost			450	4.2	1890
Total cost of Ending Work in process:					11,390