Question

In: Accounting

Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...

Cost of Units Completed and in Process

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, 75% completed 10,000 To Finished Goods, 46,000 units ?
Direct materials, 47,000 units @ $2 94,000
Direct labor 139,600
Factory overhead 54,330
Bal. ? units, 20% completed ?

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period. $
2. Cost of units transferred to finished goods during the period. $
3. Cost of ending work in process inventory. $
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $

b. Did the production costs change from the preceding period?
Yes

c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?
Increase

Solutions

Expert Solution

Cost production report
Flow Of Units Physical Units Direct Material A Conversion cost
Units to be accounted for
Beginning work in process inventory 10000
Units started 47000
Total u nits to be accounted for    57000
Units accounnted for:
Transferred out from units of opening WIP 10000
Units started and completed this period 36000
Completed and transferred out (b) 46000
Ending work in progress inventory© 11000
Total units to be accounted for (f)      57000
Calculation of equivalent units
Units in Beginning WIP n 10000 10000
% of completion of Beginning WIP in last period    100% 20%
% of completion of Beginning WIP completed in current period m 0% 80%
Equivalents units of Beginning Wip A (n*m) 0 8000
Units started and completed B 36000 36000 36000
Units of Ending WIP   11000 11000 11000
% completion 100% 100% 20%
Equivalent units in ending WIP E 11000 11000 2200
Total Equivalent units A+B+E 47000 46200
Cost per equivalent units
Direct Material A Conversion cost Total
Cost per equivalent units
Cost during the period   $94,000 193930 $287,930
Total equivalent units 47000 46200
Cost per equivalent units   d $2.00 $4.20 $6.20
Cost charged to production
Beginning Work in Process, 10000
Cost incurred during the period $287,930
Total cost accounted 297930
Cost allocated
Work in Process, Beginning 10000
To complete Inventory in process Beginning (4.2*8000) $33,600 $33,600
Cost of completed Beginning, Wip $43,600
Started and completed b*d $72,000 $151,200 $223,200
Transferred 0ut $266,800
Work in process Ending c*d $22,000 $9,240 $31,240
Total cost assigned 298040
The differnce is due to roounding off
1. Cost of beginning work in process inventory completed this period. $33,600
2. Cost of units transferred to finished goods during the period. $266,800
3. Cost of ending work in process inventory. $31,240
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $4.20
ans 1 Conversion cost
Beginning WIP (10000-(2000*2))/2000 3
Current period 4.2
Increase 1.2
If conversion cost is not rounded off
Cost production report
Flow Of Units Physical Units Direct Material A Conversion cost
Units to be accounted for
Beginning work in process inventory 10000
Units started 47000
Total u nits to be accounted for    57000
Units accounnted for:
Transferred out from units of opening WIP 10000
Units started and completed this period 36000
Completed and transferred out (b) 46000
Ending work in progress inventory© 11000
Total units to be accounted for (f)      57000
Calculation of equivalent units
Units in Beginning WIP n 10000 10000
% of completion of Beginning WIP in last period    100% 20%
% of completion of Beginning WIP completed in current period m 0% 80%
Equivalents units of Beginning Wip A (n*m) 0 8000
Units started and completed B 36000 36000 36000
Units of Ending WIP   11000 11000 11000
% completion 100% 100% 20%
Equivalent units in ending WIP E 11000 11000 2200
Total Equivalent units A+B+E 47000 46200
Cost per equivalent units
Direct Material A Conversion cost Total
Cost per equivalent units
Cost during the period   $94,000 193930 $287,930
Total equivalent units 47000 46200
Cost per equivalent units   d $2.00 $4.20 $6.20
Cost charged to production
Beginning Work in Process, 10000
Cost incurred during the period $287,930
Total cost accounted 297930
Cost allocated
Work in Process, Beginning 10000
To complete Inventory in process Beginning (4.2*8000) $33,581 $33,581
Cost of completed Beginning, Wip $43,581
Started and completed b*d $72,000 $151,114 $223,114
Transferred 0ut $266,695
Work in process Ending c*d $22,000 $9,235 $31,235
Total cost assigned 297930
The differnce is due to roounding off
1. Cost of beginning work in process inventory completed this period. $33,581
2. Cost of units transferred to finished goods during the period. $266,695
3. Cost of ending work in process inventory. $31,235
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $4.20
If any doubt please comment

Related Solutions

Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 9,000 units, 65% completed 31,635 To Finished Goods, 207,000 units ? Direct materials, 212,000 units @ $1.5 318,000 Direct labor 492,900 Factory overhead 191,685 Bal. ? units, 45% completed ? a. Based on the above data, determine the...
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 3,000 units, 75% completed 9,450 To Finished Goods, 69,000 units ? Direct materials, 71,000 units @ $1.8 127,800 Direct labor 93,700 Factory overhead 36,450 Bal., ? units, 35% completed ? Cost per equivalent units of $1.80 for Direct...
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 7,000 units, 70% completed 28,210 To Finished Goods, 161,000 units ? Direct materials, 165,000 units @ $2 330,000 Direct labor 363,100 Factory overhead 141,270 Bal. ? units, 60% completed ? a. Based on the above data, determine the...
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 6,000 units, 70% completed16,140To Finished Goods, 138,000 units? Direct materials, 141,000 units @ $1.5211,500   Direct labor178,700   Factory overhead69,430   Bal., ? units, 45% completed?   Cost per equivalent units of $1.50 for Direct Materials and $1.80 for Conversion Costs. a....
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 6,000 units, 75% completed 25,500 To Finished Goods, 138,000 units ? Direct materials, 141,000 units @ $1.7 239,700 Direct labor 372,400 Factory overhead 144,860 Bal. ? units, 70% completed ? a. Based on the above data, determine the...
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 7,000 units, 45% completed 16,660 To Finished Goods, 161,000 units ? Direct materials, 165,000 units @ $1.3 214,500 Direct labor 306,800 Factory overhead 119,340 Bal., ? units, 55% completed ? Cost per equivalent units of $1.30 for Direct...
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 6,000 units, 70% completed16,140To Finished Goods, 138,000 units? Direct materials, 141,000 units @ $1.5211,500   Direct labor178,700   Factory overhead69,430   Bal., ? units, 45% completed?   Cost per equivalent units of $1.50 for Direct Materials and $1.80 for Conversion Costs. a....
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 6,000 units, 35% completed 13,590 To Finished Goods, 138,000 units ? Direct materials, 141,000 units @ $1.6 225,600 Direct labor 200,200 Factory overhead 77,900 Bal. ? units, 35% completed ? Cost per equivalent units of $1.60 for Direct...
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 7,000 units, 65% completed 24,150 To Finished Goods, 161,000 units ? Direct materials, 165,000 units @ $1.5 247,500 Direct labor 380,700 Factory overhead 148,100 Bal. ? units, 80% completed ? Cost per equivalent units of $1.50 for Direct...
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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, 55% completed 5,420 To Finished Goods, 46,000 units Direct materials, 47,000 units @ $1.5 70,500 Direct labor 79,700 Factory overhead 30,940 Bal. ? units, 40% completed ? Cost per equivalent units of $1.50 for Direct Materials...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT