Question

1. Cost of Units Completed and in Process

   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., 3,000 units, 50% completed	10,500	To Finished Goods, 69,000 units	?
   Direct materials, 71,000 units @ $1.5	106,500
   Direct labor	220,600
   Factory overhead	85,775
   Bal., ? units, 75% completed	?

   Cost per equivalent units of $1.50 for Direct Materials and $4.30 for Conversion Costs.

   a. Based on the above data, determine the different costs listed below.

   If required, round your interim calculations to two decimal places.

   1. Cost of beginning work in process inventory completed this period	$
   2. Cost of units transferred to finished goods during the period	$
   3. Cost of ending work in process inventory	$
   4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.)	$

   b. Did the production costs change from the preceding period?
   Yes

   c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?
   Increase

Answer 1

Answer-1:

Cost of beginning work in process inventory completed this period = $6,450

Answer-2:

Cost of units transferred to finished goods during the period = $389,250

Answer-3:

Cost of ending work in process inventory = $

Answer-4:

Cost per unit of the completed beginning work in process inventory = $4.30

Explanation for all the above 4 answers:

Calculation of Number of Units in Ending Work in Process Number of units in work in process at the beginning of the period Number of unit placed during the period Less: Number of units finished in work in process during the period Number of units in work in process at the end of the period Units 3,000 71,000 69,000 5,000

Equivalents Units of Production (EUP) Units % Materials EUP-material % conversion EUP-conversion 3,000 (1-50%) 1,500 66,000 100% 66,000 100% 66,000 69,000 66,000 67,500 5,000 100% 5,000 75% 3,750 74,000 71,000 71,250 Unit completed out of Beginning WIP Started and completed (69,000 - 3,000) Transferred to finished goods Units in ending WIP Total Equivalent units 66 Cost per equivalent units of production: Total cos incurred for the period in Assembly Departmen Total Equivalent units Cost per equivalent units of production Direct materials Conversion 106,500 L 306,375 71,000 71,250 $ 1.50 $ 4.30 Production Total Cost Beginning WIP 6,450 TOTAL COST REPORT Element of cost Direct Material Conversion Direct Material Conversion Direct Material Conversion EUP Cost per EUP| Total Cost 0 $ 1.50 $ - 1,500 $ 4.30 $ 6,450 $ 66,000 $ 1.50$ 99,000 67,500 $ 4.30 $ 290,250 $ 5,000 $ 1.50 $ 7,500 3,750 $ 4.30 $ 16,125 $ Finished out 389,250 Ending WIP 23,625