In: Accounting
Units |
||
Reconciliation of Units |
||
A |
Opening WIP |
850 |
B |
Introduced |
6,000 |
C=A+B |
TOTAL |
6,850 |
D |
Transferred |
5,250 |
E=C-D |
Closing WIP |
1,600 |
Requirement 1
Statement of Equivalent Units |
|||||
Material |
Conversion Cost |
||||
Units |
Complete % |
Equivalent units |
Complete % |
Equivalent units |
|
Transferred |
5,250 |
100% |
5,250 |
100% |
5,250 |
Closing WIP |
1,600 |
50% |
800 |
20% |
320 |
Total |
6,850 |
Total |
6,050 |
Total |
5,570 |
Material |
Conversion |
|
Equivalent Units of Production |
6,050 |
5,570 |
Requirement 2
Cost per Equivalent Units |
|||
COST |
Material |
Conversion Cost |
TOTAL |
Beginning WIP Inventory Cost |
$ 985.00 |
$ 572.00 |
$ 1,557.00 |
Cost incurred during period |
$ 28,660.00 |
$ 17,809.00 |
$ 46,469.00 |
Total Cost to be accounted for |
$ 29,645.00 |
$ 18,381.00 |
$ 48,026.00 |
Total Equivalent Units |
6,050 |
5,570 |
|
Cost per Equivalent Units |
$ 4.90 |
$ 3.30 |
Material |
Conversion |
|
Cost per equivalent Unit |
$ 4.90 |
$3.30 |
Requirement 3
Statement of cost |
|||||
Cost |
Equivalent Cost/unit |
Ending WIP |
Transferred |
||
Units |
Cost Allocated |
Units |
Cost Allocated |
||
Material |
$ 4.90 |
800 |
$ 3,920.00 |
5,250 |
$ 25,725.00 |
Conversion Cost |
$ 3.30 |
320 |
$ 1,056.00 |
5,250 |
$ 17,325.00 |
TOTAL |
$ 4,976.00 |
TOTAL |
$ 43,050.00 |
Material |
Conversion |
Total |
|
Cost of Units Completed and Transferred out |
$ 25,725.00 |
$ 17,325.00 |
$ 43,050.00 |
Cost of ending Inventory |
$ 3,920.00 |
$ 1,056.00 |
$ 4,976.00 |