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., 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	?

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 "0".

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
Transferred to finished goods
Inventory in process, ending
Total units

c. Costs per equivalent unit for direct materials and conversion.

	Costs Per Equivalent Unit
Direct Materials	$
Conversion	$

d. Cost of the units started and completed during the period.
$

Answer 1

a) Ending work in process unit = 1600+29000-29600 = 1000 Units

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 Direct Materials	Equivalent Units Conversion
Inventory in process, beginning	1600	0	1600*65% = 1040
Started and completed	28000	28000	28000
Transferred to finished goods	29600	28000	29040
Inventory in process, ending	1000	1000	1000*45% = 450
Total units	30600	29000	29490

c. Costs per equivalent unit for direct materials and conversion.

Direct material = 275500/29000 = 9.50

Conversion = (84600+39258)/29490 = 4.20

d) Cost of unit started and completed = (9.50+4.20)*28000 = $383600