Question

Equivalent Units of Production and Related Costs 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, 25% completed 8,475 To Finished Goods, 69,000 units ? Direct materials, 71,000 units @ $1.9 134,900 Direct labor 201,600 Factory overhead 78,400 Bal. ? units, 35% completed ? Determine the following: a. The number of units in work in process inventory at the end of the period. units b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Whole Units Equivalent Units Direct Materials Equivalent Units Conversion Inventory in process, beginning Started and completed Transferred to finished goods Inventory in process, ending Total units c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent. Costs Per Equivalent Unit Direct Materials $ Conversion $ d. Cost of the units started and completed during the period. $

Answer 1

Answer

• All working forms part of the answer
• Requirement ‘a’

Units Reconciliation
Units to account for:
Beginning WIP	3,000
Units started this period	71,000
Total Units to account for	74,000
Total Units accounted for:
Completed & Transferred out	69,000
Ending WIP [74000 – 69000]	5,000 = ANSWER
Total Units accounted for	74,000

• Requirement ‘b’

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	5,000	100%	5,000	35%	1,750
Units STARTED & COMPLETED	66,000	100%	66,000	100%	66,000
Units of beginning WIP	3,000	0.00%	-	75.0%	2,250
Equivalent Units of Production			71,000 units = Answer		70,000 units = Answer

• Requirement ‘c’

COST per EUP			Material		Conversion
Cost incurred this period			$       134,900.00		$                  280,000.00
Total Costs		Costs	$       134,900.00	Costs	$                  280,000.00
Equivalent units of production		EUP	71,000	EUP	70,000
Cost per EUP			$             1.90 = Answer		$                        4.00 = Answer

• Requirement ‘d’

Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	66,000	$                   1.90	$       125,400.00
- Conversion	66,000	$                   4.00	$       264,000.00
Total costs started & Completed this period			$       389,400.00