Question

* A department had 250 units of beginning work-in-process, which are 90% as to direct materials

   and 70% complete as to conversion.

* The department started 430 units during a given period.

* The department completed and transferred out 380 units.

* At the end of the period, there are 300 units remaining unfinished with 100% complete as to direct materials

and 40% complete as to conversion.

      

* The following cost information is given for the department:

                                                            Direct materials            Conversion

Beginning work-in-process       $10,000                        $20,000

Current period cost                   $24,000                        $60,000

Total                                        $34,000                        $80,000

* Cost per equivalent unit for Direct materials is given as $50.

13. The equivalent units as to Conversion are ________EUs.

14. Cost per equivalent unit for Conversion is $_______.

15. Cost of 380 completed units is $____________

16. Cost of 300 ending work-in-process units is $________

Answer 1

Answer:

13. The equivalent units as to Conversion are 500 EUs.

14. Cost per equivalent unit for Conversion is $ 160.

15. Cost of 380 completed units is $ 79,800.

16. Cost of 300 ending work-in-process units is $ 34,200.

Working Note:

Process Costing
Statement of Equivalent Production
Input	Particulars	Output	Material		Conversion cost
			%	Units	%	Units
680	Put and processed	380	100%	380	100%	380
	Closing stock	300	100%	300	40%	120
680	Total	680		680		500
	Costs:
	Opening		$     10,000		$     20,000
	February		$     24,000		$     60,000
	Total		$     34,000		$     80,000
	Cost per unit		$       50.00		$     160.00

Value of Put and processed
Material	$ 19,000.00
Conversion cost	$ 60,800.00
Total	$ 79,800.00
Value of Closing Stock
Material	$ 15,000.00
Conversion cost	$ 19,200.00
Total	$ 34,200.00

In case of any doubt, please comment.