Question

12. EX.17-12.ALGO

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., 3,000 units, 50% completed	7,350	To Finished Goods, 69,000 units	?
Direct materials, 71,000 units @ $1.3	92,300
Direct labor	126,000
Factory overhead	49,000
Bal. ? units, 50% completed	?

Cost per equivalent units of $1.30 for Direct Materials and $2.50 for Conversion Costs.

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.

Answer 1

Requriement 1
Cost of beginning working in process inventory completed this period
3000 units 50 % of conversion costs = 3000*2.5 *50% = 3750
Requriement 2
Cost of units transferred to finished goods this period
	Units	Cost
Beginning work in process inventory	3000	7350
Beginning inventory completed this period (3000*2.5*50%)		3750
Units introduced and transferred (69000 -3000)	66000
Direct Materials (66,000*1.3)		85800
Conversion costs (66,000*2.5)		165000
Total cost of transferred fininshed goods	69000	261900
Requriement 3
Cost of ending work in process inventory
	Units	Cost
Ending work in process inventory (3000+71000-69000)	5000
Direct Materials (5,000*1.3)		6500
Conversion costs (5,000*2.5*50%)		6250
Cost of ending work in process inventory		12750
Requriement 4
	Units	Cost
Beginning work in process inventory	3000	7350
Beginning inventory completed this period (3000*2.5*50%)		3750
Total cost of beginning work in process inventory		11100
Cost per unit of the completed beginning work in process inventory		3.70
(11,100/3,000)