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., 8,000 units, 60% completed	23,360	To Finished Goods, 184,000 units	?
Direct materials, 188,000 units @ $1.90	357,200
Direct labor	236,100
Factory overhead	91,860
Bal., ? units, 25% 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. If required, round your answers to the nearest cent.

	Costs Per Equivalent Unit
Direct Materials	$
Conversion	$

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

Answer 1

a
Number of units in work in process inventory	12000	=8000+188000-184000
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	8000	0	3200	=8000*(1-60%)
Started and completed	176000	176000	176000	=184000-8000
Transferred to finished goods	184000	176000	179200
Inventory in process, ending	12000	12000	3000	=12000*25%
Total units	196000	188000	182200
c
	Costs Per Equivalent Unit
Direct Materials	1.90	=357200/188000
Conversion	1.80	=(236100+91860)/182200
d
Units started and completed	176000
X Costs per equivalent unit	3.70	=1.9+1.8
Cost of the units started and completed	651200