Question

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., 2,000 units, 55% completed 8,510 To Finished Goods, 46,000 units Direct materials, 47,000 units $2 94,000 Direct labor 146. Sool Factory overhead 57.000 Bal 2 units, 45% completed Cost per equivalent units of $2.00 for Direct Materials and $4.40 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?

Answer 1

Answer with working is given below

1 Cost of beginning work in process inventory completed this period $12,470 $8,510 + (900 units X $4.40) 2 Cost of units transferred to finished goods during the period $281,600 (44,000 X $6.40) 3 Cost of ending work in process inventory $11,940 (3000*$2)+(1350*$4.40) 4 Cost per unit of completed beginning work in process inventory $6.24 ($12,470/2000 units) 5 Yes production cost changed form the preceding period working notes: FIFO Method Schedule of Physical and Equivalent Units- FIFO Physical Units Equivalent Units Direct % Material completed Conversion Cost Completed Analysis of Physical Flow of Units Units to be accounted for Beginning WIP Inventory Units Started Total Units To Account for 2,000 47,000 49,000 45% 100% 900 44,000 100% 44,000 Units accounted for Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Units completed and transferred out Units in Ending WIP Inventory Total Units Accounted for Total Equivalent units 2,000 44,000 46,000 3,000 49,000 100% 3,000 45% 1,350 47,000 46,250