Question
In: Accounting
In February, Windsor, Inc. started 13,000 units. Of those, they completed 10,700 units; 2,300 units still...
In February, Windsor, Inc. started 13,000 units. Of those, they completed 10,700 units; 2,300 units still in process were 30% complete. Total costs for the month were $200,000.
How many equivalent units were in Windsor’s ending Work in Process Inventory? __
How many equivalent units will be used to calculate the cost per equivalent unit? ______
What is the average cost per equivalent unit for the month? __________________________
What is the total cost of units completed and transferred out? ______________________
What is the total cost assigned to the units still in ending inventory? __________________________
Solutions
Expert Solution
Answers:
Equivalent units in ending Work in Process Inventory = 690 units
Equivalent units used to calculate the cost per equivalent unit = 11,390 units
Average cost per equivalent unit = $ 17.56
Workings for above 3 parts
| Input | Particulars | Output | Cost | |
| % | Units | |||
| 13,000 | Started and Completed | 10,700 | 100% | 10,700 |
| Ending WIP | 2,300 | 30% | 690 | |
| 13,000 | Total | 13,000 | 11,390 | |
| Total Cost | $ 200,000 | |||
| Cost per unit | $ 17.56 |
Total cost of units completed and transferred out = $ 187,884 (10,700 * 17.56)
Total cost assigned to the units still in ending inventory = $ 12,116 (690 * 17.56)
NOTE: As nothing is mentioned in the question, the answers have been rounded off Part c (Average cost per equivalent unit) up to 2 decimal places. Also rounded off part d and e up to the nearest dollar.
In case of any doubt, please comment.
ekkarill92 answered 1 year agoRelated Solutions
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