Question

W W 2 E xcel Template sigment.Chou () Protected View Excel Search File Home Insert Page Layout Formulas Data Review View Help DVMO Label QuickBooks 0 PROTECTED VIEW Bewe e s from the Wernet can contain Viruses. Unless you need to edit, in safe to stay in Protected View Enable Editing F33 X Equivalent Units A B C D 1 E3-11 Compute equivalent units, unit costsand costs assigned 2 The Polishing Department of Major Company has the following production and manufacturing cost data for September 3. Materials are entered at the beginning of the process. Production: Beginning inventory 1,800 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period ar 42,900; ending inventory of 5,000 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs, material costs added in Polishing during the month, $175,800, labor and overhead applied in Polishing during the month, $125,680 and $257,140, respectively, 13 Instructions 14 (a) Compute the equivalent units of production for materials and conversion costs for the month of September. 15 (b) Compute the unit costs for materials and conversion costs for the month 16 (0) Determine the costs to be assigned the units transferred out and in process 17 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?", 21(a) Compute the equivalent units of production for materials and conversion costs for the month of September Physica Units Valve Value Work in process, September 1 Units started into production Value Units transferred out work inre entender T0.7 0.10 CO VALA

Answer 1

1. Compute the equivalent units of production for material and conversion cost for month of September :

a. Calculation of units transferred from WIP

Work in Progress on 1st September	1,600.00
Add :Units started into production	42,900.00
Less : Work in Progress on 30th September	(5,000.00)
Units Transferred Out	39,500.00

b. Calculation of Equivalent units :

	Equivalment Units
	Materials	Conversion Costs
Units transferred from WIP	39,500.00	39,500.00
Work in process September 30	5,000.00	500.00
Less : Opening Work in Progress	-	(480.00)
Total Equivalent Units produced	44,500.00	39,520.00

2. Calculate Unit cost of Material & Conversion costs for the month

	Cost during the month	Equivalent Unit during the month	Cost per Unit
Material Cost Added during the Month	175,800.00	44,500.00	3.95
Labor and overhead applied during the moth	382,820.00	39,520.00	9.69

3. Determine the costs to be assigned to units transferred to work in progress :

Closing WIP Valuation
	Allocation Unit Rate	Equivalent Units	Cost
Material Cost	3.95	5,000.00	19,752.81
Conversion Cost	9.69	500.00	4,843.37
Total			24,596.18

Calculation of cost of Units transferred Out from WIP	Allocation Unit Rate	Equivalent Units	Cost
Opening Stock - Material Cost		1,600.00	20,000.00
Opening Stock - Convesion Cost		480.00	43,180.00
Balance - Material Cost (Transferred Unit - Opening Equivalent Units)	37,900.00	3.95	149,726.29
Balance - Conversion Cost ((Transferred Unit - Opening Equivalent Units)	39,020.00	9.69	377,976.63
Total			590,882.92

Q.2 : Assuming 3750 Units in closing WIP & conversion cost added is 359,695 determine equivalent unit, unit cost & WIP

a	Compute the equivalent units of production for material and conversion cost for month of September
	Work in Progress on 1st September	1,600.00
	Add :Units started into production	42,900.00
	Less : Work in Progress on 30th September	3,750.00
	Units Transferred Out	48,250.00
		Equivalment Units
		Materials	Conversion Costs
	Units transferred from WIP	48,250	48,250
	Work in process September 30	(3,750)	(375)
	Less : Opening Work in Progress	-	(480)
	Total Equivalent Units produced	44,500	47,395
b	Calculate Unit cost of Material & Conversion costs for the month
		Cost during the month	Equivalent Unit during the month	Cost per Unit
	Material Cost Added during the Month	175,800	44,500	3.95
	Labor and overhead applied during the moth	359,695	47,395	7.59
c	Determine the costs to be assigned to units transferred to work in progress
	Closing WIP Valuation
		Allocation Rate	Equivalent Units	Cost
	Material Cost	3.95	5,000.00	19,752.81
	Conversion Cost	7.59	500.00	3,794.65
	Total			23,547.46

Calculation of cost of Units transferred Out from WIP	Allocation Unit Rate	Equivalent Units	Cost
Opening Stock - Material Cost		1,600.00	20,000.00
Opening Stock - Convesion Cost		480.00	43,180.00
Balance - Material Cost (Transferred Unit - Opening Equivalent Units)	46,650.00	3.95	184,293.71
Balance - Conversion Cost ((Transferred Unit - Opening Equivalent Units)	47,770.00	7.59	362,540.99
Total			610,014.70