Question

mul Mchine hours were Cutting 1.680 and 7. Transferred good & Transferred goodscos sferred goods costing 567,600 from the Cutting Department to the Assembly Department sferred goods costing $134,900 from Assembly to Finished Goods. Sold goods costing $150,000 for $200,000 on account Instructions sumalize the transactions. (Omit explanations.) 53.5 (LO 3, 4), AP In Sh. HO 3, 4), AP In Shady Company, materials are entered at the beginning of each process. Work in s inventories, with the percentage of work done on conversion costs, and production data for its ring Department in selected months during 2020 are as follows. Beginning Work in Process Conversion Units Cost% Month January March Units Transferred Out 11.000 12,000 14,000 10,000 Ending Work in Process Conversion Units Cost% 2,000 3.000 7,000 1,500 May July Instructions a. Compute the physical units for January and May. b. Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.

Answer 1

Requirement a:

i. Physical units for January = Units transferred out + Ending work in process inventory

= 11,000 + 2,000

= 13,000

ii. Physical units for May = Units transferred out + Ending work in process inventory

= 14,000 + 7,000

= 21,000

Requirement b:

	Materials	Conversion costs
January	13,000	12,200
March	15,000	12,900
May	21,000	19,600
July	11,500	10,600

Calculations:

For January,
	Materials	Conversion costs
Units transferred out	11,000	11,000
Ending Work in process
[2,000 x 100%]	2,000
[2,000 x 60%]		1,200
Total Equivalent units	13,000	12,200
For March,
	Materials	Conversion costs
Units transferred out	12,000	12,000
Ending Work in process
[3,000 x 100%]	3,000
[3,000 x 30%]		900
Total Equivalent units	15,000	12,900
For May,
	Materials	Conversion costs
Units transferred out	14,000	14,000
Ending Work in process
[7,000 x 100%]	7,000
[7,000 x 80%]		5,600
Total Equivalent units	21,000	19,600
For July,
	Materials	Conversion costs
Units transferred out	10,000	10,000
Ending Work in process
[1,500 x 100%]	1,500
[1,500 x 40%]		600
Total Equivalent units	11,500	10,600