Question

Chapter 5: Applying Excel
Data
Beginning work in process inventory:
Units in process	500
Completion with respect to materials	25	%
Completion with respect to conversion	60	%
Costs in the beginning work in process inventory:
Materials cost	$5,672
Conversion cost	$20,806
Units started into production during the period	11,400
Costs added to production during the period:
Materials cost	$513,013
Conversion cost	$772,154
Ending work in process inventory:
Units in process	500
Completion with respect to materials	10	%
Completion with respect to conversion	80	%

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the equivalent units of production for materials?

(b) What is the equivalent units of production for conversion?

(c) What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

(d) What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

(e) What is the cost of the units transferred out? (Round your cost per equivalent unit to 2 decimal places.)

Requirement 3:

Either print a copy of your worksheet or make a copy of the worksheet in your workbook before proceeding. You will need to refer back to this worksheet.

Change the percentage completion with respect to conversion for the beginning inventory from 60% to 70%, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:

Chapter 5: Applying Excel Data Beginning work in process inventory: Units in process 500 Completion with respect to materials 25 % Completion with respect to conversion 70 % Costs in the beginning work in process inventory: Materials cost $5,672 Conversion cost $20,806 Units started into production during the period 11,400 Costs added to production during the period: Materials cost $513,013 Conversion cost $772,154 Ending work in process inventory: Units in process 500 Completion with respect to materials 10 % Completion with respect to conversion 80 %

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the equivalent units of production for materials?

(b) What is the equivalent units of production for conversion?

(c) What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

(d) What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

(e) What is the cost of the units transferred out? (Round your cost per equivalent unit to 2 decimal places.)

(f) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

• In the weighted-average method, the percentage completion of beginning inventory has no effect on the equivalent units of production.unanswered
• In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost per equivalent unit.unanswered
• In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost of the units transferred out.

Answer 1

	Weighted Average	Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Part 1
	Quantities			Equivalent Units
			Whole Units	Materials	Conversion Cost
	Units to be account for
	Work in Process, Beginning		500
	add:Started into production		11,400
	-Total Units		11,900
	Units accounted for
	Transferred out		11,400	11,400	11,400
	Work in Process, Ending		500	50	400		10%	80%
a and b	Equivalent Units-Weighted Average		11,900	11,450	11,800
	Cost
				Materials	Convsersion Cost	Total
	Work in Process, Beginning			$           5,672	$                   20,806	$         26,478
	add:Started into production			$      513,013	$                772,154	$   1,285,167
	Total Cost to account for			$      518,685	$                792,960	$   1,311,645
	Equivalent Units			11,450	11,800
c and d	Unit Cost	Total Cost/Equivalent Units		45.30	67.20	112.50
e	Cost accounted for
	Unit Completed and transferred out
	Equivalent Units		11,400	11,400
	Cost per Equivalent Unit		$           45.30	$           67.20
	-Total Cost Accounted For		$      516,420	$      766,080	$             1,282,500
Part 2
	Quantities			Equivalent Units
			Whole Units	Materials	Conversion Cost
	Units to be account for
	Work in Process, Beginning		500
	add:Started into production		11,400
	-Total Units		11,900
	Units accounted for
	Transferred out		11,400	11,400	11,400
	Work in Process, Ending		500	50	400		10%	80%
a and b	Equivalent Units-Weighted Average		11,900	11,450	11,800
	Cost
				Materials	Convsersion Cost	Total
	Work in Process, Beginning			$           5,672	$                   20,806	$         26,478
	add:Started into production			$      513,013	$                772,154	$   1,285,167
	Total Cost to account for			$      518,685	$                792,960	$   1,311,645
	Equivalent Units			11,450	11,800
c and d	Unit Cost	Total Cost/Equivalent Units		45.30	67.20	112.50
e	Cost accounted for
	Unit Completed and transferred out
	Equivalent Units		11,400	11,400
	Cost per Equivalent Unit		$           45.30	$           67.20
	-Total Cost Accounted For		$      516,420	$      766,080	$             1,282,500
f	All of the given statement are true.
	% Completion of beginning inventory has no impact on Equivalent units, unit cost and cost of transferred out units
	as can be seen above.