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, 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 Determine the following: a. The number of units in work in process inventory at the end of the period. units Feedback Check My Work b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Whole Units Equivalent Units Equivalent Units Direct Materials Conversion Check My Work < Previous Next >

Answer 1

a. 7500 units

	Units
Beginning WIP	9000
Started	40000
Total units to account for	49000
Completed and transferred	41500
Ending WIP (49000 - 41500)	7500
Total units accounted for	49000

b.

Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
	Whole	Equivalent Units	Equivalent Units
	Units	Direct Materials	Conversion
Inventory in process, beginning	9000	0	5400
Started and completed	32500	32500	32500
Transferred to finished goods	41500	32500	37900
Inventory in process, ending	7500	7500	2250
Total units	49000	40000	40150

c.

	Costs per Equivalent Unit
Direct Materials ($272000/40000)	$                                        6.80
Conversion [($80000 + $40450)/40150]	$                                        3.00

d. 32500 x ($6.80 + $3.00) = 32500 x $9.80 = $318500