What is the equivalent units of production for conversion?
What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)
What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)
What is the cost of the units transferred out? (Use rounded cost per equivalent unit.)
Change the percentage completion with respect to conversion for the beginning inventory from 45% to 80%, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:
What is the equivalent units of production for conversion?
What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)
What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)
What is the cost of the units transferred out? (Use rounded cost per equivalent unit.)
Which of the following statements are true? (Select all that apply.)
| | | A | B | C | | 1 | Chapter 4: Applying Excel | | | | 2 | | | | | 3 | Data | | | | 4 | Beginning work in process inventory: | | | | 5 | Units in process | 200 | | | 6 | Completion with respect to materials | 10 | % | | 7 | Completion with respect to conversion | 45 | % | | 8 | Costs in the beginning work in process inventory: | | | | 9 | Materials cost | $404 | | | 10 | Conversion cost | $6,210 | | | 11 | Units started into production during the period | 15,000 | | | 12 | Costs added to production during the period: | | | | 13 | Materials cost | $245,921 | | | 14 | Conversion cost | $996,935 | | | 15 | Ending work in process inventory: | | | | 16 | Units in process | 500 | | | 17 | Completion with respect to materials | 10 | % | | 18 | Completion with respect to conversion | 50 | % | | 19 | | | | | If your formulas are correct, you should get the correct answers to the following questions. |
| (a) | What is the equivalent units of production for materials? |
| (b) | What is the equivalent units of production for conversion? |
| (c) | What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.) |
| (d) | What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.) |
| (e) | What is the cost of the units transferred out? (Use rounded cost per equivalent unit.) |
| Requirement 3: | | Either print a copy of your worksheet or make a copy of the worksheet in your workbook before proceeding. You will need to refer back to this worksheet. | | | Change the percentage completion with respect to conversion for the beginning inventory from 45% to 80%, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this: | | | A | B | C | | 1 | Chapter 4: Applying Excel | | | | 2 | | | | | 3 | Data | | | | 4 | Beginning work in process inventory: | | | | 5 | Units in process | 200 | | | 6 | Completion with respect to materials | 10 | % | | 7 | Completion with respect to conversion | 80 | % | | 8 | Costs in the beginning work in process inventory: | | | | 9 | Materials cost | $404 | | | 10 | Conversion cost | $6,210 | | | 11 | Units started into production during the period | 15,000 | | | 12 | Costs added to production during the period: | | | | 13 | Materials cost | $245,921 | | | 14 | Conversion cost | $996,935 | | | 15 | Ending work in process inventory: | | | | 16 | Units in process | 500 | | | 17 | Completion with respect to materials | 10 | % | | 18 | Completion with respect to conversion | 50 | % | | 19 | | | | | |
| If your formulas are correct, you should get the correct answers to the following questions. |
| (a) | What is the equivalent units of production for materials? |
| (b) | What is the equivalent units of production for conversion? |
| (c) | What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.) |
| (d) | What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.) |
| (e) | What is the cost of the units transferred out? (Use rounded cost per equivalent unit.) |
| (f) | Which of the following statements are true? (Select all that apply.) | | In the weighted-average method, the percentage completion of beginning inventory has no effect on the equivalent units of production. | | In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost per equivalent unit. | | In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost of the units transferred out.
| |
Solution 1:
a. Equivalant unit of production for material = 14750 units
b. Equivalant unit of production for conversion = 14950 units
c. Cost per equivalant unit of material = $16.70
d. Cost per equivalant unit of conversion = $67.10
e. Cost of unit transferred out = $1,231,860
Solution 3:
a. Equivalant unit of production for material = 14750 units
b. Equivalant unit of production for conversion = 14950 units
c. Cost per equivalant unit of material = $16.70
d. Cost per equivalant unit of conversion = $67.10
e. Cost of unit transferred out = $1,231,860
f. In the weighted-average method, the percentage completion of beginning inventory has no effect on the equivalent units of production.
In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost per equivalent unit.
In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost of the units transferred out.
| Computation of Equivalent unit of Production - Weighted Average |
| Particulars | Physical Units | Material | Conversion |
| Unit completed & Transferred out (200 + 15000 - 500) | 14700 | 14700 | 14700 |
| Closing WIP: | 500 | | |
| Material (10%) | | 50 | |
| Conversion (50%) | | | 250 |
| | | |
| Equivalent units of production | 15200 | 14750 | 14950 |
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