Question

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., 5,000 units, 50% completed	19,750	To Finished Goods, 115,000 units	?
Direct materials, 118,000 units @ $2.00	236,000
Direct labor	349,900
Factory overhead	136,040
Bal., ? units, 40% completed	?

Determine the following:

a. The number of units in work in process inventory at the end of the period.
units

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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
Started and completed
Transferred to finished goods
Inventory in process, ending
Total units

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c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

	Costs Per Equivalent Unit
Direct Materials	$
Conversion	$

d. Cost of the units started and completed during the period.
$

Answer 1

Solution a:

The number of units in work in process inventory at the end of the period. = Beginning WIP Units + Unit started - Units completed and transferred out

= 5000 + 118000 - 115000 = 8000 units

Solution b:

Assembly Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	5000
Units started this period	118000
Total unit to be accounted for	123000
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 0% Conversion - 50%	5000	0	2500
Started and completed currently	110000	110000	110000
Transferred to finished goods	115000	110000	112500
Units in ending WIP Material - 100% Conversion - 40%	8000	8000	3200
Total units accounted for	123000	118000	115700

Solution c:

Assembly Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Material	Conversion
Current period cost	$721,940.00	$236,000.00	$485,940.00
Equivalent units		118000	115700
Cost per equivalent unit		$2.00	$4.20

Solution d:

Cost of the units started and completed during the period = 110000*($2 + $4.20) = $682,000