Question

Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process.

Units:
Work in process, December 1 (80% of the way through the process)	9,000	units
Transferred-in from the Polishing and Cutting Department during December. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	23,000	units
Completed during December. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	?	units
Work in process, December 31 (70% of the way through the process)	2,000	units
Costs:
Work in process, December 1 (transferred-in costs, $1,600; direct materials
costs, $20,450; and conversion costs, $37,890). . . . . . . . . .	$59,940
Transferred in from the Polishing and Cutting Department during December. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	97,600
Direct materials added during December. . . . . . . . . . . . . . . . . . . .	53,150
Conversion costs added during December. . . . . . . . . . . . . . . . . . . . .	90,850	Requirement 1: Summarize flow of physical​ units, and compute total equivalent units using the​ weighted-average method for three cost​ categories: transferred-in, direct​ materials, and conversion costs. Requirement 2: Summarize total costs to account​ for, and compute the cost per equivalent unit for each cost category. Requirement 3: Assign total costs to units completed and transferred to Finished Goods Inventory and units in December 31 Work in Process Inventory.

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units		9,000
Add: Units Started in Process		23,000
Total Units to account for:		32,000
UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out	30,000
Ending Work in Process		2,000
Total Units to be accounted for:	32,000
Equivalent Units:
			Transferred in Cost	Material Cost	Conversion
			% Completion	Units	% Completion	Units	% Completion	Units
Units completed and tarnsferred out	100%	30,000	100%	30,000	100%	30,000
Ending Work in Process	100%	2,000	100%	2,000	70%	1,400
Total Equivalent units		32,000		32,000		31,400
TOTAL COST TO ACCOUNT FOR:
			Transferred in	Material	Conversion
Beginning work in Process	1,600	20,450	37,890
Cost Added during May	97,600	53,150	90,850
Total Cost to account for:	99,200	73,600	1,28,740
Total Cost to account for:			3,01,540
COST PER EQUIVALENT UNIT:
			Transferred in	Material	Conversion
Total cost added during the year	99,200	73,600	1,28,740
Equivalent Units		32,000	32,000	31,400
Cost per Equivalent unit	3.1	2.3	4.1
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred out (30000 units)
			Equivalent unit	Cost per EU	Total Cost
Transferred in cst		30000	3.1	93000
Material			30,000	2.3	69000
Conversion Cost		30,000	4.1	123000
Total Cost of Units completed and transferred out:	285000
Ending Work in process (2,000 units)
			Equivalent unit	Cost per EU	Total Cost
Transferred in cst		2000	3.1	6200
Material			2,000	2.3	4600
Conversion Cost		1,400	4.1	5740
Total cost of Ending inventory			16540
Total cost accounted for:			301540