Question

| CLOUK Calculator PMIL ILCI 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., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units Direct materials, 40,000 units @ 272,000 $6.80 Direct labor 80,000 Factory overhead 40,450 Bal., 2 units, 30% completed Cost per equivalent units of $6.80 for Direct Materials and $3.00 for Conversion Costs. a. Based on the above data, determine the different costs listed below. 1. Cost of beginning work in process inventory completed this period LL 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? Yes C. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period? Decrease Feedback Check My Work Previous Next

Answer 1

Please find below table useful to compute desired results: -

A В 1 Balance closing unit =9000+40000-41500 2 Cost of Beginning work in progress =72360+0*6.8+9000*(1-0.4)*3 3 Cost of Units transferred to finished goods =B2+(41500-9000)*6.8+(41500-9000)*3 4 Cost of ending Work in progress =B1*6.8+B1*0.3*3 5 Cost per unit of the completed beginning work in process inventory=B2/9000 =6.8+3-B5 7 b. Yes 8 9 c. Decrease =3-(B5-6.8)

End results would be as follows: -

1 Balance closing unit 2 Cost of Beginning work in progress 3 Cost of Units transferred to finished goods 4 Cost of ending Work in progress 5 Cost per unit of the completed beginning work in process inventory 6 7 b. Yes 8 9 c. Decrease 7,500.00 88,560.00 opening cost + opening equivaent material units X Cost per unit + Opening equivalent overhead unit X cost per unit 407,060.00 opening completed goods cost + cost of Units started and completed during year 57,750.00 Cost of equivalent material unit X cost per unit + Cost of equivalent overhead units X Cost per unit 9.84 Opening Cost / Opening completed units (0.04) (0.04)