Question

La cu 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, 25% completed 5,175 To Finished Goods, 69,000 units Direct materials, 71,000 units $1.3 92,300 Direct labor 90,100 Factory overhead 35,000 Bal., 2 units, 25% completed Cost per equivalent units of $1.30 for Direct Materials and $1.80 for Conversion Costs. a. Based on the above data, determine the different costs listed below. If required, round your interim calculations to two decimal places 1. Cost of beginning work in process inventory completed this period 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?

Answer 1

a.

1. Total Opening stock= 5000 out of which 25% completed. means 5000*25%= 750 completed units.

Cost of Finished goods at the biginning 750 units*(1.3+1.7)=2250

Opening WIP= 2250*1.3= 2925

2. Cost of units transfered to FG

Opening FG= 2250 (750 Units)

Production during the Period= 68250 (69000-750) = 211575 (1.3*68250+1.8*68250)

3. Cost of Ending WIP = 8775

4. Cost per unit of completion of Openening WIP = 1.3

b. Production cost has changed from $ 3.00 to $ 3.10 per unit

Assuming that the Direct material cost per unit $ 1.3 for openeing WIP