Ending Inventory | ||||
Beginning Inventory | 8000 | |||
Add: Units placed in production | 188000 | |||
Less: Finished Goods | -184000 | |||
Ending Inventory | 12000 | |||
Equivalent Units | ||||
Equivalent Units | ||||
Whole Units | Direct Material | Conversion | ||
Beginning Inventory (70% completed)=(8000*(1-70%)) | 8000 | 2400 | ||
Started and completed(184000-8000) | 176000 | 176000 | 176000 | |
Transferred to finished goods | 184000 | 176000 | 178400 | |
Ending Inventory(65% completed)=(12000*65%) | 12000 | 12000 | 7800 | |
Total Units | 196000 | 188000 | 186200 | |
Cost | ||||
Direct Material | Conversion | |||
Total cost for the Assembly Department=(A) | $ 2,44,400.00 | $ 6,88,940.00 | ||
Total Equivalent units=(B) | 188000 | 186200 | ||
Cost per Equivalent Units=(A)/(B) | $ 1.30 | $ 3.70 | ||
Conversion cost=($496000+$192940) | ||||
Cost of units started and completed=(176000*($1.30+$3.70)) | $ 8,80,000.00 | |||
a) | ||||
1) | Beginning Work in Process balance(Given) | $ 29,440.00 | ||
Cost of conversion cost during the period=(2400*$3.70) | $ 8,880.00 | |||
Cost of beginning inventory | $ 38,320.00 | |||
2) | Cost of beginnning Work in Process | $ 38,320.00 | ||
Cost of units started and completed during period | $ 8,80,000.00 | |||
Cost of units transferred to finished goods | $ 9,18,320.00 | |||
3) | Cost of Ending Work in Process | |||
Direct Material (Equivalent units* Cost per equivalent units)=(12000*$1.30) | $ 15,600.00 | |||
Conversion (Equivalent units*Cost per equivalent units)=(7800*$3.70) | $ 28,860.00 | |||
Cost of Ending Work in Process | $ 44,460.00 | |||
4) | Cost per unit of beginning work in process inventory=($38320/8000) | $ 4.79 | ||
b) | Yes the production cost changed during the current period. | |||
Earlier Period | Current Period | |||
Cost of production | 4.79 | $ 5.00 | ||
c) | Beginning Work in Process(given) | $ 29,440.00 | ||
Less: Direct Material incurred in the previous period(8000*$1.30) | $ -10,400.00 | |||
Conversion cost incurred in the previous period | $ 19,040.00 | |||
Conversion cost per unit in the current period | $ 3.70 | |||
Conversion cost per unit in previous period=($19040/(8000*70%)) | $ 3.40 | |||
Increase conversion cost per equivalent units | $ 0.30 |
Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a...
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...
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., 2,000 units, 55% completed 8,510 To Finished Goods, 46,000 units Direct materials, 47,000 units $2 94,000 Direct labor 146. Sool Factory overhead 57.000 Bal 2 units, 45% completed Cost per equivalent units of $2.00 for Direct Materials and...
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 @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed ? Cost per equivalent units of $6.80 for Direct...
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 @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed ? Cost per equivalent units of $6.80 for Direct...
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 @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed ? Cost per equivalent units of $6.80 for Direct...
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., 1,600 units, 35% completed 17,440 To Finished Goods, 29,600 units ? Direct materials, 29,000 units @ $9.50 275,500 Direct labor 84,600 Factory overhead 39,258 Bal. ? units, 45% completed ? a. Based on the above data, determine the...
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., 8,000 units, 40% completed 24,160 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $1.5 282,000 Direct labor 551,400 Factory overhead 214,480 Bal., ? units, 50% completed ? Cost per equivalent units of $1.50 for Direct...
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., 8,000 units, 65% completed 33,920 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $1.9 357,200 Direct labor 527,300 Factory overhead 205,120 Bal. ? units, 75% completed ? Cost per equivalent units of $1.90 for Direct...
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, 50% completed 10,500 To Finished Goods, 69,000 units ? Direct materials, 71,000 units @ $1.5 106,500 Direct labor 220,600 Factory overhead 85,775 Bal., ? units, 75% completed ? Cost per equivalent units of $1.50 for Direct...
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, 45% completed 7,800 To Finished Goods, 69,000 units ? Direct materials, 71,000 units @ $1.7 120,700 Direct labor 103,800 Factory overhead 40,365 Bal., ? units, 20% completed ? Cost per equivalent units of $1.70 for Direct...