Question

Units:
Work in process, December 1 (80% of the way through the process)	5,000	units
Transferred-in from the Polishing and Cutting Department during December	32,000	units
Completed during December	?	units
Work in process, December 31 (70% of the way through the process)	8,000	units
Costs:
Work in process, December 1 (transferred-in costs, $32,000; direct materials
costs, $20,400; and conversion costs, $37,220)	$89,620
Transferred in from the Polishing and Cutting Department during December	97,500
Direct materials added during December	75,800
Conversion costs added during December	90,800

Requirement 1. Summarize flow of physical units and compute total equivalent units for three cost? categories: transferred-in, direct? materials, and conversion costs.

Brookman Semiconductors
Photolithography Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Transferred-	Direct	Conversion
Flow of Production	Units	in	Materials	Costs
Units to account for
Units accounted for:
Total equivalent units

Requirement 2. Summarize total costs to account for and compute the cost per equivalent unit for each cost category. ?(Round the cost per equivalent unit to the nearest? cent.)

Brookman Semiconductors
Photolithography Department
Cost per Equivalent Unit
	Transferred-	Direct	Conversion
	in	Materials	Costs	Total
Cost per equivalent unit

Requirement 3. Assign total costs to units completed and transferred to Finished Goods Inventory and units in December 31 Work in Process Inventory. ?(Enter quantities? first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Round your answers to the nearest whole? dollar.)

???

Brookman Semiconductors
Photolithography Department
Assignment of Costs
		Transferred-		Direct				Conversion			Total
		in		Materials				Costs			Costs

Assignment of total costs:

x (

+

+

)

x

x

x

Total cost accounted for

Answer 1

Solution 1:

Computation of Equivalent unit of Production - Photolithography Department
Particulars	Physical Units	Transferred in cost	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	5000
Units started this period	32000
Total unit to be accounted for	37000
Units Accounted for:
Unit completed & Transferred out	29000	29000	29000	29000
Closing WIP:	8000
Prior deparment cost (100%)		8000
Material (100%)			8000
Conversion (70%)				5600
Equivalent units of production	37000	37000	37000	34600

Solution 2:

Computation of Cost per equivalent unit of Production - Photolithography Department
Particulars	Transferred in cost	Material	Conversion
Opening WIP	$32,000.00	$20,400.00	$37,220.00
Cost Added during April	$97,500.00	$75,800.00	$90,800.00
Total cost to be accounted for	$129,500.00	$96,200.00	$128,020.00
Equivalent units of production	37000	37000	34600
Cost per Equivalent unit	$3.50	$2.60	$3.70

Solution 3:

Computation of Cost of ending WIP and units completed & transferred out - Photolithography Department
Particulars	Prior Department Cost	Material	Conversion	Total
Equivalent unit of Ending WIP	8000	8000	5600
Cost per equivalent unit	$3.50	$2.60	$3.70
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$28,000	$20,800	$20,720	$69,520
Units completed and transferred	29000	29000	29000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$101,500	$75,400	$107,300	$284,200