Question

Beginning goods in process inventory (March 31)

Units of product                                                                                                    30,000 units

Percentage of completion – Direct materials                                                      100%

Percentage of completion – Direct labor                                               65%

Direct materials costs                                                                                           $4,300

Direct labor costs                                                                                                  $ 700

Factory overhead costs applied                                                         $ 920

Activities during the current period (April)

Units started this period                                                                                      90,000 units

Units transferred out (completed)                                                                        100,000 units

Direct materials costs                                                                                           $ 12,900

Direct labor costs                                                                                                  $   6,700

Factory overhead costs applied                                                         $   7,680

Ending goods in process inventory (April 30)

Units of product                                                                                                    20,000

Percentage of completion – Direct materials                                                         100%

Percentage of completion – Direct labor                                                25%

Process Cost Summary

Weighted Average

Cost Charged to Production

Costs of beginning goods in process

     Direct Materials

     Direct Labor

     Factory Overhead

Costs incurred this period

     Direct materials

     Direct Labor

     Factory Overhead

Total costs to account for

Unit Cost Information

Units to accounts for:                                                                                            Units accounted for:

Beginning goods in process                                                                                   Completed and transferred out

Units started this period                                                                                                        Ending goods in process

Total units to account for                                                                                                       Total units accounted for

                                                                                                            Direct                        Direct                          Factory

Equivalents Units of Production (EUP)            Materials Labor                           Overhead

Units completed and transferred out

Units of ending goods in process

     Direct materials

     Direct labor

     Factory overhead

Equivalent units of production

                                                                                                            Direct                          Direct                          Factory

Cost per EUP                                                                                  Materials       Labor                           Overhead

Costs of beginning goods in process

Costs incurred this period

Total costs

/EUP

Cost per EUP

Cost Assignment and Reconciliation

Costs transferred out (COGM)

     Direct materials

     Direct labor

     Factory overhead

Costs of ending goods in process

     Direct materials

     Direct labor

     Factory overhead

Total costs accounted for

1. What is the equivalent units of production for direct materials?

2. What is the equivalent units of production for direct labor?

3. What is the equivalent units of production for factory overhead?

4. What is the cost per equivalent unit of production (4 decimals) for direct materials?

5. What is the cost per equivalent unit of production (4 decimals) for direct labor?

6. What is the cost per equivalent unit of production for factory overhead?

7. What is the cost of goods manufactured?

8. What is the cost of ending goods in process?

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				30,000
Add: Units Started in Process				90,000
Total Units to account for:				120,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed				100,000
Ending Work in Process				20,000
Total Units to be accounted for:				120,000
Equivalent Units:
			Material Cost		Labour and oH
			% Completion	Units	% Completion	Units
Units started and completed			100%	100,000	100%	100,000
Ending Work in Process			100%	20,000	25%	5,000
Total Equivalent units				120,000		105,000
TOTAL COST TO ACCOUNT FOR:
			Material	Labaour	OH
Beginning work in Process			4,300	700	920
Cost Added during May			12,900	6,700	7,680
Total Cost to account for:			17,200	7,400	8,600
Total Cost to account for:					33,200
COST PER EQUIVALENT UNIT:
			Material	Labour	OH
Total cost added during the year			17,200	7,400	8,600
Equivalent Units			120,000	105,000	105,000
Cost per Equivalent unit			0.1433	0.0705	0.0819
TOTAL COST ACCOUNTED FOR:
Units started and Transferred out (100000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			100,000	0.1433	14330
Labour			100,000	0.0705	7050
Overheadss			100,000	0.0819	8190
Total Cost of Units completed and transferred out:					29570
Ending Work in process (20,000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			20,000	0.1433	2866
Labour			5,000	0.0705	352.5
Overheadsd			5,000	0.0819	409.5
Total cost of Ending Work in process:					3,628
Cost charged t Production:
Cost of beginning Wor in process
Material					4300
Direct labour					700
Overheads					920
Cost Incurred this period:
Material					12900
labour					6700
Overheads					7680
Total cost to account for					33200
Cost assignment and Reconciliation;
Cost transferred out:;
Material					14330
Labour					7050
Overheads					8190
Total cost of transferred out					29570
Cost Ending units
Material					2866
Labour					352
Overheads					410
Total ending WIP					3628
Total cost accounted for					33198