In: Accounting
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 | $ | $ |
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 | |||||||