Question

Exercise 3-13 At the start of November, Hiroole Refinery had Work in Process inventory consisting of 3,600 units that were 80 percent complete with respect to materials and 50 percent complete with respect to conversion costs. The cost of the units was $46,400 ($32,200 of material cost and $14,200 of labor and overhead). During November, the company started 39,900 units and incurred $383,700 of material cost and $395,900 of labor and overhead. The company completed 40,600 units during the month, and 2,900 un process at the end of November. The units in ending Work in Process were 90 percent complete with respect to materials and 40 percent complete with respect to conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. (Round answers to 2 decimal places, e.g. 15.25.) Materials Conversion costs 8.02 Cost per equivalent units 7.91 $ LINK TO TEXT Calculate the cost of items completed during November. (Round answer to O decimal places, e.g. 125.) Cost of items completed during November LINK TO TEXT Calculate the cost of ending Work in Process. (Round answer to O decimal places, e.g. 125.) Cost of ending work in process Click if you would like to Show Work for this question: Modify Show Work

Answer 1

Solution:

Calculate equivalent unit: Weighted average

	Whole unit	%	Material	%	Conversion cost
Unit completed and transfered out	40,600	100%	40,600	100%	40,600
Ending work in process	2,900	90%	2,610	40%	1,044
			43,210		41,644

Calculate cost per equivlent unit:

	Material	Conversion cost
Beginning wip	32,200	14,200
cost during period	383,700	395,900
Total cost	415,900	410,100
Equivalent unit	43,210	41,644
Cos per equivalent unit	9.62	9.84

Cots of units completed and transferred out = (9.62+9.84)*40,600 = 790,076

Cost of ending work in process = (2,610*9.62+1,044*9.84)= 35,380