Question

1. 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., 3,000 units, 60% completed	9,960	To Finished Goods, 69,000 units	?
   Direct materials, 71,000 units @ $1.40	99,400
   Direct labor	173,700
   Factory overhead	67,530
   Bal. ? units, 75% 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	5000 units	=3000+71000-69000
b
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	3000	0	1200	=3000*(1-60%)
Started and completed	66000	66000	66000	=69000-3000
Transferred to finished goods	69000	66000	67200
Inventory in process, ending	5000	5000	3750	=5000*75%
Total units	74000	71000	70950
c
	Costs Per Equivalent Unit
Direct Materials	1.40	=99400/71000
Conversion	3.40	=(173700+67530)/70950
d
Units started and completed	66000
X Cost Per Equivalent Unit	4.80	=1.40+3.40
Cost of the units started and completed	316800