Question

7.) The following production data were taken from the records of the Finishing Department for the month of June:
Inventory in process, June 1 (15% complete as to conversion)				4,000 units
Completed units during June				71,000 units
Ending inventory (60% complete as to conversion)				7,000 units
Complete the chart below and determine the number of equivalent units of production for materials and conversion for June 30.
Determine the cost per unit if the Materials cost incurred was $90,500 & Conversion cost was $225,100
All materials were added at the beginning of the process.					(10 points)
Units to be assigned costs:				Equivalent Units
			Whole Units	Direct Materials	Conversion
Inventory in process, June 1				0
Started and completed in June
Transferred to Packaging Department in June
Inventory in process, June 30
Total units to be assigned costs
				Costs
Total cost for June
total equivalent units
cost per equivalent unit				$	$

Answer 1

Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv	Total
Opening WIP	4,000.00	0%	-	4,000.00	85%	3,400.00
Units started and completed (71,000 - 4,000)	67,000.00	100%	67,000.00	67,000.00	100%	67,000.00
ending WIP	7,000.00	100%	7,000.00	7,000.00	60%	4,200.00
Equivalent Units			74,000.00			74,600.00
Current Month Costs			90,500.00			225,100.00	315,600.00
Cost per Equivalent units			1.22			3.02
Note - Assumed FIFO Method