Question

A total of 6,000 units of product remain in the Quality Testing department at the end of the year. Direct materials are 75 percent complete and direct labor is 20 percent complete. Calculate the equivalent units in the Quality Testing department for direct materials and direct labor. Calculating Cost per Equivalent Unit. The following information pertains to the Finishing department for the month of June. WHOLE UNIT % COMPLETION EQUIVALENT UNIT DIRECT MATERIAL 6,000 75 4500 DIRECT LABOR 6,000 20 1200 Direct Materials Direct Labor Overhead Total costs to be accounted for $100,000 $200,000 $300,000 Total equivalent units accounted for 10,000 units 8,000 units 8,000 units Required: Calculate the cost per equivalent unit for direct materials, direct labor, overhead, and in total. Show your calculations. Assigning Costs to Completed Units and to Units in Ending WIP Inventory. The following information is for the Painting department for the month of January. Direct Materials Direct Labor Overhead Cost per equivalent unit $2.10 $1.50 $3.80 Equivalent units completed and transferred out 3,000 units 3,000 units 3,000 units Equivalent units in ending WIP inventory 1,000 units 1,200 units 1,200 units Required: a. Calculate the costs assigned to units completed and transferred out of the Painting department for direct materials, direct labor, overhead, and in total. b. Calculate the costs assigned to ending WIP inventory for the Painting department for direct materials, direct labor, overhead, and in total. (200/1,000) X 100 = 20% COMPLETED 1,000 UNITS COMPLETED

Answer 1

Calculate the cost per equivalent unit for direct materials, direct labor, overhead, and in total

	Direct Material	Direct Labor	Overhead	Total
Total Cost Accounted for                                 A	100000	200000	300000
Total equivalent units accounted for       B	10000	8000	8000
cost per equivalent unit         A/B	10.00	25.00	37.50	72.50

Part 2

Calculate the costs assigned to units completed and transferred out of the Painting department for direct materials, direct labor, overhead, and in total.

	Direct Material	Direct Labor	Overhead	Total
Equivalent units completed and transferred out	3000	3000	3000
cost per equivalent unit	2.1	1.5	3.8
osts assigned to units completed and transferred out	6300	4500	11400	22200

Calculate the costs assigned to ending WIP inventory for the Painting department for direct materials, direct labor, overhead, and in total

	Direct Material	Direct Labor	Overhead	Total
Equivalent units in ending WIP inventory	1000	1200	1200
cost per equivalent unit	2.1	1.5	3.8
costs assigned to ending WIP inventory	2100	1800	4560	8460