Question

Production data:
Pounds in process, May 1; materials       100% complete; conversion 90% complete		88,000
Pounds started into production during May		530,000
Pounds completed and transferred out		?
Pounds in process, May 31:       materials 60% complete; conversion 40% complete		65,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	106,000
Conversion cost	$	59,700
Cost added during May:
Materials cost	$	551,120
Conversion cost	$	328,230

1.

Compute the equivalent units of production. Materials conversion

2.

Compute the costs per equivalent unit for the month. Materials Conversion

3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.

Answer 1

solution: 1. Equivalent units of production - FIFO Units |а 88,000 465,000 65,000 Beginning inventory units started and completed=530000-65000 Ending inventory Equivalent units of service (production) % Material ь 0% 100% 60% 0 EUP- Material % conversion EUP- conversion Ja*b Tc latc 10% 8,800 465,000 100% 465,000 39,000 40% 26,000 504,000 499,800 2.Cost per equivalent unit of production Costs incurred this period = Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Material 551120 504,000 EUP 1.09349 conversion 328,230 499,800 0.65672 EUP 3.Costs of ending goods in process EUP Cost per EUP Total cost Material conversion Total cost of ending goods in process 39,000 26,000 1.09349 0.65672 42,646 17,075 59,721 3. Cost of units transferred out: EUP Cost per EUP Total cost cost in beginning work in process=106000+59700 165,700.00 cost to complete beginning work in process Material conversion 1.09349 0.65672 8,800 5,779.16 5,779.16 Units started and completed Material conversion Total costs of goods transferred out 465,000 465,000 1.09349 0.65672 508,474 305.376 813,850 985,329