Question

the charges to work in process assembly department for a period 3000 units 40% 7500

eBook Calculator Print Item 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., 3,000 units, 40% completed 7,500 To Finished Goods, 69,000 units Direct materials, 71,000 units @ $1.5 106,500 Direct labor 135,700 Factory overhead 52,760 Bal., 2 units, 40% completed Cost per equivalent units of $1.50 for Direct Materials and $2.70 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 inventor cent.) b. Did the production costs change from the preceding period equivalent increase, decrease or remain C. Assuming that the direct materials cost per unit did not change from the preceding parod, Previous Next > Check My Work of Save and ist Sun Agent for Grading Sub All work saved

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

B Answer Part 1) Cost of beginning work in process completed this period = Cost of beginning work in process (Equivalent conversion cost units * cost per equivalent unitfor conversion cost) =7500+( (3000*60%) * 2.7) = $ 12360 Thus the correct answer is $ 12360 Part 2) Cost of units transferred to finished goods during the period = Cost of beginning inventory including cost of beginning inventory incurred in previous period + (units started and complaeted *total unit cost) 21 = 12360 + (69000-3000)*(1.5+2.7)) B = 12360+ 66000*4.2) = $ 289560 5 Thus the correct answer is $ 289560 - Part 3) Cost of ending inventory work in process B = (equivalent material unit * cost per equivalent unit material )+ ( equivalent unit of conversion cost * cost per equivalent unit of conversion cost) = ((3000+71000-69000) *1.5)+(((3000+71000-69000) *40%)*2.7) 1 = (5000*1.5) + (2000*2.7) 2 = $ 12900 3 Thus the correct answer is $ 12900 ... Sheet179 Sheet180 Sheet181 Sheet133 Sheet147 Sheet155 Sheet158 Sheet159 S... +

Part 4) Cost per unit of beginning work in process completed unit = beginning inventory total cost including cost of previous period / beginning inventory unit = 12360/3000 = $4.12 Thus the correct answer is $ 4.12 Part b) Yes it has changed from previous, as current period unit cost is 4.2 (1.5+2.7) Partc) The conversion cost has increased from previous year. Explanation As equivalent unit cost has increased this period from previous period and cost per equivalent unit of direct material has not changed, so it means cost per equivalent unit of conversion cost has increased.