hapter 1e Prccess cos Ssyems EX 1811 Equivalent units of pro

hapter 1e Prccess cos Ssyems EX 18-11 Equivalent units of production and related costs The charges to Work in Process-Assembly Department for a period, together wit its mation concerning production, are as follows. All direct materials are placed in at the beginning of production. Work in Process Assembly Department 17,440 To Finished Goods, 29,600 units 275,500 84,600 39,258 Bal, 1,600 units, 35% completed Direct materials, 29,000 units@ $9.50 Direct labor Factory overhead Bal2 units, 45% completed Determine the following: The number of units in work in process inventory at the end of the per b. a. Equivalent units of production for direct materials and conversion c. Costs per equivalent unit for direct materials and conversion d. Cost of the units started and completed during the period EX 18-12 Cost of units completed and in process a. Based on the data in Exercise 18-11, determine the following: 1. Cost of beginning work in process inventory completed this peri 2. Cost of units transferred to finished goods during the period

Solution

UNITS TO ACCOUNT FOR: Beginning Work in Process units 1,600 Add: Units Started in Process 29,000 Total Units to account for: 30,600 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 1600 Units started and completed 28,000 Ending Work in Process 1,000 Total Units to be accounted for: 30,600 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 65% 1,040 Units started and completed 100% 28,000 100% 28,000 Ending Work in Process 100% 1,000 45% 450 Total Equivalent units 29,000 29,490 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 275,500 123,858 Equivalent Units 29,000 29,490 Cost per Equivalent unit 9.5 4.2 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (28000 units) Equivalent unit Cost per EU Total Cost Material 28,000 9.5 266000 Conversion Cost 28,000 4.2 117600 Total Cost of Units completed and transferred out: 383600 Req a: Nnumber of units of Ending WIP: 1000 units Req b: Equivalent units of material and conversion Material Conversion Equivalent unitts 29000 29490 Req c: Cost per unit Material Conversion Cost per equivalent unnit 9.5 4.2 Req d: Cost of Units started and completed: $ 383600