Question

Q1:

Equivalent Units of Materials Cost

The Bottling Department of Rocky Springs Beverage Company had 3,000 ounces in beginning work in process inventory (60% complete). During the period, 49,400 ounces were completed. The ending work in process inventory was 2,500 ounces (50% complete).

What are the total equivalent units for direct materials if materials are added at the beginning of the process?
_ units

Q2:

Equivalent Units of Conversion Costs

The Bottling Department of Rocky Springs Beverage Company had 4,390 ounces in beginning work in process inventory (80% complete). During the period, 43,900 ounces were completed. The ending work in process inventory was 3,512 ounces (20% complete).

What are the total equivalent units for conversion costs? Note: Round to the nearest whole unit.

units

Q3:

Cost per Equivalent Unit

The cost of direct materials transferred into the Bottling Department of Rocky Springs Beverage Company is $473,900. The conversion cost for the period in the Bottling Department is $366,080. The total equivalent units for direct materials and conversion are 67,700 ounces and 70,400 ounces, respectively.

Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.

Direct materials cost per equivalent unit:	$ per ounce
Conversion costs per equivalent unit:	$ per ounce

Q4:

Cost of Units Transferred Out and Ending Work in Process

The costs per equivalent unit of direct materials and conversion in the Bottling Department of Rocky Springs Beverage Company are $1.55 and $2.6, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		1,800
Started and completed during the period	36,000		36,000
Transferred out of Bottling (completed)	36,000		37,800
Inventory in process, end of period	4,000		2,400
Total units to be assigned costs	40,000		40,200

The beginning work in process inventory had a cost of $1,060. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production	$
Inventory in process, ending	$

Answer 1

Q1:
	Equivalent units of Material Cost			51,900
	Working:
					Materials
			Physical Units		% of Completion		Equivalent Units of Production
Units Completed			49,400		100%		49,400
Units in Ending Work in process			2,500		100%		2,500
Total			51,900				51,900
Note: Material are added at the beginning of period.So, it is 100% comleted.
Q2:
	Equivalent units of Conversion Cost			47,412
	Working:
					Conversion Costs
			Physical Units		% of Completion		Equivalent Units of Production
Units Completed			43,900		100%		43,900
Units in Ending Work in process			3,512		20%		3,512
Total			47,412				47,412
Q3:
	Direct materials cost per equivalent unit				$               7.00	per ounce
	Conversion costs per equivalent unit				$               5.20	per ounce
					Direct Materials			Conversion Costs
	Total Costs				$       4,73,900			$       3,66,080
	/ Equivalent units of production				67,700			70,400
	Cost per Equivalent unit				$               7.00			$               5.20
Q4:
	Completed and transferred-out production				$       1,55,140
	Inventory in process, ending				$           12,440
	Working:
	Costs of Units completed and transferred out:				EUP	Cost per EUP		Total	Total
	Beginning work in process							$             1,060
	Units started and completed during this period
	Direct Materials				36000	$       1.55		$           55,800
	Conversion				37800	$       2.60		$           98,280
	Total								$ 1,55,140
	Costs of Ending Work in process;
	Direct Materials				4000	$       1.55		$             6,200
	Conversion				2400	$       2.60		$             6,240
	Total								$     12,440
	Total								$ 1,67,580