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., 6,000 units, 75% completed 25,500 To Finished Goods, 138,000 units ? Direct materials, 141,000 units @ $1.7 239,700 Direct labor 372,400 Factory overhead 144,860 Bal. ? units, 70% completed ? 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

• All working forms part of the answer

Workings

Units Reconciliation
Units to account for:
Beginning WIP	6,000
Units started this period	141,000
Total Units to account for	147,000
Total Units accounted for:
Completed & Transferred out	138,000
Ending WIP	9,000
Total Units accounted for	147,000

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	9,000	100%	9,000	70%	6,300
Units STARTED & COMPLETED	132,000	100%	132,000	100%	132,000
Units of beginning WIP	6,000	0%	-	25%	1,500
Equivalent Units of Production			141,000		139,800

COST per EUP			Material		Conversion
Cost incurred this period			$       239,700.00		$                  517,260.00
Total Costs		Costs	$       239,700.00	Costs	$                  517,260.00
Equivalent units of production		EUP	141,000	EUP	139,800
Cost per EUP			$             1.70000		$                        3.70000

Working for ANSWERS

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			$          25,500.00
Cost to complete beginning WIP-
- Direct Materials	-	$                   1.70	$                         -
- Conversion	1,500	$                   3.70	$            5,550.00
Total cost to complete beginning WIP			$          31,050.00 [Answer 1]
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	132,000	$                   1.70	$       224,400.00
- Conversion	132,000	$                   3.70	$       488,400.00
Total costs started & Completed this period			$       712,800.00
Total cost of work finished this period				$      743,850.00 [Answer 2]
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	9,000	$                   1.70	$          15,300.00
- Conversion	6,300	$                   3.70	$          23,310.00
Total cost of ending WIP				$         38,610.00 [Answer 3]
Total costs accounted for				$      782,460.00

• Requirement 1 = $ 31,050 [or $ 5,550 if only current cost is considered]
• Requirement 2 = $ 743,850
• Requirement 3: $ 38,610
• Requirement 4 = $ 31,050 / 6000 units = $ 5.18