Question

Equivalent Units of Production and Related Costs

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., 4,000 units, 50% completed	14,600	To Finished Goods, 92,000 units	?
Direct materials, 94,000 units @ $1.90	178,600
Direct labor	257,700
Factory overhead	100,260
Bal. ? units, 70% completed	?

Determine the following:

a. The number of units in work in process inventory at the end of the period.
units

b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".

Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, beginning
Started and completed
Transferred to finished goods
Inventory in process, ending
Total units

c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

	Costs Per Equivalent Unit
Direct Materials	$
Conversion	$

d. Cost of the units started and completed during the period.
$

Answer 1

a) Ending WIP unit = 4000+94000-92000 = 6000 Units

b) Equivalent unit

Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, beginning	4000	0	4000*50% = 2000
Started and completed	88000	88000	88000
Transferred to finished goods	92000	88000	90000
Inventory in process, ending	6000	6000	6000*70% = 4200
Total units	98000	94000	94200

c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

Direct material = 178600/94000 = 1.90

Conversion = (257700+100260)/94200 = 3.80

d) Cost of unit started and completed = (1.9+3.8)*88000 = 501600