In: Accounting
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
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 |