Question

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,400 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities.

Assembly Department	Units			Percent of Direct Materials Added			Percent of Conversion
Beginning work in process		2,000			75	%		25	%
Units transferred out		9,000			100	%		100	%
Ending work in process		4,400			85	%		35	%

Beginning work in process inventory—Assembly dept	$	2,186 (includes $1,688 for direct materials and $498 for conversion)
Costs added during the month:
Direct materials	$	17,422
Conversion	$	20,582
Required: Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the weighted-average method. Cost per equivalent unit of production Choose Numerator Choose Denominator Costs to be allocated / Equivalent units of production Cost per equivalent unit of production Direct Materials / 0 Conversion / 0

Answer 1

Cost per equivalent unit of production
		Choose Numerator			Choose Denominator
		Costs to be allocated		/	Equivalent units of production				Cost per equivalent unit of production
Direct Materials		$          19,110		/		12,740				$       1.50
Conversion		$          21,080		/		10,540				$       2.00
Workings:
a. Calculation of equivalent units of production
					Materials					Conversion
			Physical Units		% of completion		Equivalent units			% of completion		Equivalent units
							of production					of production
Units transferred out			9,000		100%		9,000			100%		9,000
Ending Units			4,400		85%		3,740			35%		1,540
Total			13,400				12,740					10,540
b. Calculation of total costs
					Materials		Conversions
	Beginning work in process inventory				$       1,688		$        498
	Costs added during the year				$     17,422		$ 20,582
	Total Costs				$     19,110		$ 21,080