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., 2,000 units, 75% completed	7,850	To Finished Goods, 46,000 units	?
Direct materials, 47,000 units @ $1.6	75,200
Direct labor	111,400
Factory overhead	43,370
Bal. ? units, 80% completed	?

Cost per equivalent units of $1.60 for Direct Materials and $3.30 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.	$

b. Did the production costs change from the preceding period?

and could break it down so i can study it and know how to get answers?

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					2,000
Add: Units Started in Process					47,000
Total Units to account for:					49,000
UNITS TO BE ACCOUNTED FOR:
Units completed from beginning WIP					2,000
Units started and completed					44,000
Ending Work in Process					3,000
Total Units to be accounted for:					49,000
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units complted				0%	0	25%	500
Units started and completed				100%	44,000	100%	44,000
Ending Work in Process				100%	3,000	80%	2,400
Total Equivalent units					47,000		46,900
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Cost Added during May				75,200		154,770
Total Cost to account for:				75,200		154,770
Equivalent Units				47,000		46,900
Cost per Equivalent unit				1.6		3.3
TOTAL COST ACCOUNTED FOR:
Units completed from beginning WIP (2000 unt)
Beginning Cost						7850
Materiall				0	1.6	0
Conversion				500	3.3	1650
Total cost of units from beginning WIP						9500
Units completed and Transferred out (41500 units)
				Equivalent unit	Cost per EU	Total Cost
Material				44,000	1.6	70400
Conversion Cost				44,000	3.3	145200
Total cost of units started and completed						215600
Ending Work in process (3000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				3,000	1.6	4800
Conversison Cost				2,400	3.3	7920
Total cost of Ending Work in process:						12,720
Cost of beginning WIP			9500
Divide: Units			2000
Cost per unit			4.75
The Production cost per unit have increased from $ 4.75 to $ 4.90