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., 2,000 units, 45 completed 5,690 to shed Goods, 46,000 units Direct materials, 47,000 units Direct labor Factory overhead Bal., 2 units, 50% completed a. The number of units in work in process inventory at the end of the period en un production for Grect materials and conversion an amounts Work in Process Assembly Department Equivalent Unit of Production for Direct Materials and conversion Costa Whole Equivalent Unite Equivalent Units Units Wet Materiale Conversion Transferred to feed youth tentory in process, anding

Answer 1

Answers

• Requirement [a]
  Units in WIP at the end
  = 2000 + 47000 – 46000 units transferred
  = 3000 units
• Requirement [b]
  

Number of Equivalent Units of Production
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, beginning	2,000	-	1,100
Started and completed	44,000	44,000	44,000
Transferred to Packing Department	46,000	44,000	45,100
Inventory in process, ending	3,000	3,000	1,500
Total	49,000	47,000	46,600

• Requirement [c]

Direct material cost per equivalent unit = $ 89300 / 47000 units = $ 1.90
Conversion cost per equivalent unit = ($77200 + 29980) / 46600 units = $ 2.30

• Requirement [d]
  Cost of units started and completed = (44000 units x $ 1.90) + (44000 units x $ 2.30)
  = 83600 + 101200
  = $ 184,800