Question

pt. 1

Required information The following information applies to the questions displayed below. A production department in a process manufacturing system completed its work on 84,000 units of product and transferred them to the next department during a recent period of these units, 33,600 were in process at the beginning of the period. The other 50,400 units were started and completed during the period. At period-end, 17,700 units were in process Prepare the production department's equivalent units of production for direct materials under each of three separate assumptions using the weighted average method for process costing Equivalent Units of Production (EUP) Weighted Average Method 1. All direct materials are added to products when processing begins. Units 6 Materials EUP-Materials Goods completed B4,000 10096 84,000 Ending work in process 17.700 100% 17,700 1 1 01.700 101.700 Total 2. Beginning inventory is 30% complete as to materials and conversion costs. Ending inventory is 80% complete as to materials and conversion costs. Units EUP Materials Goods completed Total units to account for Materials 100% 5 096 a. Beginning inventory is to complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60W complete as to conversion costs. Units Materials EUP Materials Goods completed Total units to account for Total

pt 2.

Answer 1

Solution 1:

Equivalent unit of production - Weighted Average method
Particulars	Units	% Materials	EUP - Materials
Goods completed	84000	100%	84000
Ending work in process	17700	100%	17700
Total			101700
Equivalent unit of production - Weighted Average method
Particulars	Units	% Materials	EUP - Materials
Goods completed	84000	100%	84000
Ending work in process	17700	80%	14160
Total			98160
Equivalent unit of production - Weighted Average method
Particulars	Units	% Materials	EUP - Materials
Goods completed	84000	100%	84000
Ending work in process	17700	30%	5310
Total			89310

Solution 2:

Equivalent unit of production - FIFO method
Particulars	Units	% Materials	EUP - Materials
Beginning Work In Process	33600	0%	0
Started and completed	50400	100%	50400
Ending work in process	17700	100%	17700
Total			68100
Equivalent unit of production - FIFO method
Particulars	Units	% Materials	EUP - Materials
Beginning Work In Process	33600	70%	23520
Started and completed	50400	100%	50400
Ending work in process	17700	80%	14160
Total			88080
Equivalent unit of production - FIFO method
Particulars	Units	% Materials	EUP - Materials
Beginning Work In Process	33600	40%	13440
Started and completed	50400	100%	50400
Ending work in process	17700	3000%	531000
Total			594840