Question

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

Answer 1

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
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