Question

1. Equivalent Units of Production and Related Costs

   The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

   Work in Process-Assembly Department
   Bal., 2,000 units, 25% completed	5,200	To Finished Goods, 46,000 units	?
   Direct materials, 47,000 units @ $1.7	79,900
   Direct labor	129,400
   Factory overhead	50,390
   Bal. ? units, 20% completed	?

   Determine the following:

   a. The number of units in work in process inventory at the end of the period.
   units

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   b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".

   Work in Process-Assembly Department
   Equivalent Units of Production for Direct Materials and Conversion Costs
   	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
   Inventory in process, beginning
   Started and completed
   Transferred to finished goods
   Inventory in process, ending
   Total units

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   c. The rate used to allocate costs between completed and partially completed production.Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

   	Costs Per Equivalent Unit
   Direct Materials	$
   Conversion	$

   d. Cost of the units started and completed during the period.

Answer 1

Solution a:

Number of units in work in process inventory at the end of the period = Beginning WIP units + Units Started - Units completed = 2000 + 47000 - 46000 = 3000 units

Solution b:

Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
Particulars	Whole Units	Equivalent Units
		Direct Materials	Conversion
Inventory in process, beginning	2000	0	1500
Started and completed	44000	44000	44000
Transferred to finished goods	46000	44000	45500
Inventory in process, ending	3000	3000	600
Total units	49000	47000	46100

Solution c:

Assembly Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Material	Conversion
Current period cost	$259,690.00	$79,900.00	$179,790.00
Equivalent units		47000	46100
Cost per equivalent unit		$1.70	$3.90

Solution d:

Cost of units started and completed during the period = (44000*$1.70) + (44000*$3.90) = $246,400