Cost of Goods Sold Balance May 1 Transfer in fromm Balance M

Cost of Goods Sold Balance, May 1 Transfer in fromm Balance, May 31 E20-20 Computing EUP Collins Company has the following data for the Assembly Department for August: Units in process at the beginning of August Units started in August Units completed and transferred Units in process at end of August 900 2,000 2,100 800 Conversion costs are added evenly throughout the process. The company uses the weighted-average method. Compute the equivalent units of production for direct materials and conversion costs for each independent scenario: 1. Units in process at the end of August are 20% complete, materials are added at the. beginning of the process. Units in process at the end of August are 80% complete, materials are added at the beginning of the process. 2.

Solution

Scenario 1) Phy units Mate Conver WIP OPEN (Being on WAM) 900 900 900 Started and completed 1200 1200 1200 completed and Transferred out 2100 WIP CLOSE 800 800 160 (20%) Equivalent Units of production 2900 2260 Scenario 2) Phy units Mate Conver WIP OPEN (Being on WAM) 900 900 900 Started and completed 1200 1200 1200 completed and Transferred out 2100 WIP CLOSE 800 800 640 (80%) Equivalent Units of production 2900 2740