Question

its EX 20-11 Equivalent units of production and related costs The charges to Work in Process-Assembly Department for a period, together with infor mation concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process- Assembly Department Bal, 5,000 units, 35% completed 10,475 To Finished Goods, 105,500 units Direct materials, 108,000 units $1.50 162,000 Direct labor 145,300 Factory overhead 47,525 Bal? units, 45% completed Determine the following: a. The number of units in work in process inventory at the end of the period. b. Equivalent units of production for direct materials and conversion. c. Costs per equivalent unit for direct materials and conversion. d. Cost of the units started and completed during the period.

Answer 1

(a)

Units in process at beginning of period	5000
Units placed in production during period	108000
Less Units finished during period	(105500)
Units in Process at ending of Period	7500 units

(b)

	Percent Completed this Period		Equivalent Units
		Whole Units	Direct Materials	Conversion
Inventory in Process, Beginning	35%	5000	0	(5000 * 65%) =3250
Started and completed		100500	100500	100500
Transferred to finished goods		105500	100500	103750
Inventory in Process, Ending	45%	7500	7500	(7500 * 45%) =3375
Total Units		113000	108000	107125

(c)

	Costs
	Direct Materials	Conversion
Total cost for period in Assembly Department	$162000	($145300 + $47525) =$192825
Divided by Total Equivalent Units (from above)	108000	107125
Cost per equivalent unit	$1.50	$1.80

(d)

Cost of the units started and completed during the period:
Direct Materials unit cost	$1.50
Conversion unit cost	$1.80
Total unit cost	$3.30
X units started and completed	100500
Cost of units started and completed	$331650