Question

In: Accounting

A company’s Depart A had a beginning WIP of 200,000 units with 100% completed as it...

A company’s Depart A had a beginning WIP of 200,000 units with 100% completed as it pertains to direct materials and only 40% as it pertains to conversion costs. Department A started 500,000 units during the period. Department A transferred 400,000 total units to Department B during the period. Department A’s ending WIP had 90% of direct materials completed and 30% of conversion costs. Compute the equivalent units of production for the period for direct materials and conversion costs. (10 points)

Expert Solution

Method to calculate is not given in the question

making assumptions that weighted average method is used to calculate equivalent units of production

Calculate equivalent units of production under weighted average method

Particular	material	conversion
Units completed and transferred to next department	(400000×100%) 400000	(400000×100%) 400000
Ending inventory(note below)	(30000×90%) 270000	(300000×30%) 90000
Total equivalent units	670000	490000

Note : ending inventory = beginning balance + units started during the period - units completed and transferred

= 200000 + 500000 - 400000 = 300000units

making assumptions FIFO METHOD is followed

calculate equivalent units of production under FIFO METHOD

Particular	material	conversion
Units transferred and completed (400000 unit's)
Beginning inventory 200000 unit's	(200000×0%) 0	(200000×60%) 120000
Units started during the month (200000units)	(200000×100%) 200000	(200000×100%) 200000
Ending inventory (note below)	(300000×90%) 270000	(300000×30%) 90000
Total equivalent units	470000	410000

Ending inventory = beginning inventory + units started during the month - units completed and transferred

= 200000+500000 - 400000 = 300000

I have done both methods for student point of view

Student can choose any method most of the method preferable is weighted average method

ALL THE BEST

PLEASE DO SUPPORT US

ANY DOUBT PLEASE COMMENT BELOW

THANK YOU

ekkarill92 answered 2 years ago

Department A had 10,000 units in the beginning work in process that is 100% completed with...

Department A had 10,000 units in the beginning work in process that is 100% completed with respect to material and 55% completed with respect to conversion costs. 12,000 units were added during the period and 4,000 units remain in ending work-in-process inventory. The ending inventory were 40% completed. Required: a. What was the number of equivalent units of production for the period with respect to material and conversion costs if process costing, weighted average costing method is used to cost...

UNITS: beginning WIP inventory (20% complete as to CC) 5,000 units started 20,000 units completed and...

UNITS: beginning WIP inventory (20% complete as to CC) 5,000 units started 20,000 units completed and transferred out 15,000 ending WIP inventory (Mat 100%, CC 50% complete) 10,000 Costs: beginning inventory materials $ 4,000 CC $ 1,000 Current period: materials $ 16,000 CC $ 4,000 All materials are added at the beginning of the process Please show the calculations! doing it in excel! 1. What is your products equivalent units (EUP) for Mat & CC using weighted average? --> Materials...

Saba enterprises had 250 units in beginning WIP which were 80% complete with regard to conversion...

Saba enterprises had 250 units in beginning WIP which were 80% complete with regard to conversion costs. 9,250 units were added during the period. 8,000 units were completed. Ending WIP was 100% complete with regard to material and 60% complete with regard to conversion. Beginning WIP amounted to $3,500 of which $1,000 was for conversion. Costs added amounted to $132,280 of which $94,870 was for materials. Required: 1. Compute cost of goods completed and cost of WIP ending using weighted...

Department G had 1,800 units 25% completed at the beginning of the period, 13,200 units were...

Department G had 1,800 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,500 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: Work in process, beginning of period $31,500--- Costs added during period: Direct materials (12,900 units at $9) 116,100 --- Direct labor 75,600 --- Factory overhead 25,200. All direct materials are placed in process...

Department G had 2,280 units 25% completed at the beginning of the period, 13,900 units were...

Department G had 2,280 units 25% completed at the beginning of the period, 13,900 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $30,900 Costs added during period: Direct materials (13,520 units at $9) 121,680 Direct labor 137,100 Factory overhead 54,840 All direct materials are placed in process at...

Department G had 1,920 units 25% completed at the beginning of the period, 12,800 units were...

Department G had 1,920 units 25% completed at the beginning of the period, 12,800 units were completed during the period, 1,600 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: Work in process, beginning of period $29,700 Costs added during period: Direct materials (12,480 units at $8) 99,840 Direct labor 81,000 Factory overhead 27,000 All direct materials are placed in process at the...

Department G had 2,040 units 25% completed at the beginning of the period, 13,800 units were...

Department G had 2,040 units 25% completed at the beginning of the period, 13,800 units were completed during the period, 1,700 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: Work in process, beginning of period$32,900 Costs added during period: Direct materials (13,460 units at $8)107,680 Direct labor78,600 Factory overhead26,200 All direct materials are placed in process at the beginning of production and...

Department G had 2,160 units 25% completed at the beginning of the period, 12,300 units were...

Department G had 2,160 units 25% completed at the beginning of the period, 12,300 units were completed during the period, 1,800 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $26,400 Costs added during period: Direct materials (11,940 units at $9) 107,460 Direct labor 73,200 Factory overhead 24,400 All direct materials are placed in process at...

Department G had 2,280 units 25% completed at the beginning of the period, 13,400 units were...

Department G had 2,280 units 25% completed at the beginning of the period, 13,400 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $32,200 Costs added during period: Direct materials (13,020 units at $9) 117,180 Direct labor 82,200 Factory overhead 27,400 All direct materials are placed in process at...

Department G had 2,040 units 25% completed at the beginning of the period, 12,700 units were...

Department G had 2,040 units 25% completed at the beginning of the period, 12,700 units were completed during the period, 1,700 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $30,900 Costs added during period: Direct materials (12,360 units at $9) 111,240 Direct labor 100,240 Factory overhead 37,590 All direct materials are placed in process at...