Question

Elliott Company produces large quantities of a standardized product. The following information is available for the first process in its production activities for March Units Beginning work in process inventory Started Ending work in process inventory 1.000 10,000 2,000 Costs Beginning work in process inventory Direct materials Conversion status of ending work in process inventory Materials-Percent complete Conversion-Percent complete Direct materials added 100% Direct labor added 25% Overhead applied (140% of direct labor) Total costs to account for Ending work in process inventory $1,620 3,936 $ 5,556 66,360 73,410 102,774 $248, 100 $ 21,840

Answer 1

	Total costs to account for:
							$
	Total costs to account for						248100
	Total costs accounted for				(Refer below)		248100
	Difference due to rounding cost/unit						0
	Unit reconciliation:
	Units to account for:
	Beginning work in process inventory						1000
	Started						10000
	Total units to account for						11000
	Total units accounted for:
	Units started and completed during the year				(11000-2000)		9000
	Ending work in process inventory						2000
	Total units accounted for						11000
	Equivalent units of production (EUP)-Weighted average method
							Units	% materials	EUP-Materials	% conversion	EUP-Conversion
	Units started and completed during the year						9000	100%	9000	100%	9000
	Ending work in process inventory						2000	100%	2000	25%	500
	Total units								11000		9500
	Cost per equivalent unit of production								Materials		Conversion
	Beginning work in process inventory								1620		3936
	Cost added during the year								66360		176184
											(73410+102774)
	Total cost								67980		180120
	/ Equivalent units of production								11000		9500
	Cost per equivalent unit of production								6.18		18.96
	Total costs accounted for:
	Cost of units transferred out						EUP	Cost per EUP	Total cost
	Direct materials						9000	6.18	55620
	Conversion						9000	18.96	170640
	Total costs transferred out					A			226260
	Costs of ending work in process
	Direct materials						2000	6.18	12360
	Conversion						500	18.96	9480
	Total cost of ending work in process					B			21840
	Total costs accounted for					A+B			248100