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., 9,000 units, 75% completed 27,000 To Finished Goods, 207,000 units Direct materials, 212,000 units @ 318,000 $1.5 Direct labor 334,900 Factory overhead 130,290 Bal. ? units, 80% 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 "O". 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

Answer 1

a) Ending work in process = 9000+212000-207000 = 14000

b) Equivalent unit

	Whole Units	Equivalent unit direct material	Equivalent unit conversion
Inventory in process,Beginning	9000	0	9000*25% = 2250
Unit started and completed	198000	198000	198000
Transferred to finished goods	207000	198000	200250
Inventory in process, Ending	14000	14000	14000*80% = 11200
Total	221000	212000	211450

Cost per equivalent unit

Direct material = 318000/212000 = 1.5

Conversion = (334900+130290)/211450 = 2.2

d) Cost of unit started and completed = 3.7*198000 = $732600