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., 6,400 units, 40% completed	45,760	To Finished Goods, 119,400 units	?
Direct materials, 116,000 units @ $6.25	725,000
Direct labor	145,160
Factory overhead	90,020
Bal. ? units, 25% completed	?

Determine the following:

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

b. Equivalent units of production for direct materials and conversion. If an amount box does not require an entry, leave it blank.

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

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 = 6400 + 116000 - 119400 = 3000 units

Solution b:

Assembly Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	6400
Units started this period	116000
Total unit to be accounted for	122400
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 0% Conversion - 60%	6400	0	3840
Started and completed currently	113000	113000	113000
Transferred to finished goods	119400	113000	116840
Units in ending WIP Material - 100% Conversion - 25%	3000	3000	750
Total units accounted for	122400	116000	117590

Solution c:

Assembly Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Material	Conversion
Current period cost	$960,180.00	$725,000.00	$235,180.00
Equivalent units		116000	117590
Cost per equivalent unit		$6.25	$2.00

Solution d:

Cost of the units started and completed during the period = 113000 * ($6.25 + $2) = $932,250