Question

Exercise 6 Our Co's packaging department started April with a beginning WIP inventory of 90 units. During April, it transferred 540 units to finished goods and its ending WIP inventory consists of 60 units. Complete the physical unit flow information below. Physical Unit Flow Units to be accounted for: Beginning work in process Units started this period Total units to be account for Units accounted for as follows: Completed and transferred out Ending goods in process Total units accounted for as follows Exercise 7 Our Co's packaging department transferred 540 units to finished goods and its ending WIP inventory consists of 60 units which were 70% complete with respect to direct labor (direct materials are added at the beginning of the process). Overhead is applied based on direct labor. Calculate the equivalent units of production. Direct Materials Direct Labor Factory Overhead Equivalent Units of Production (EUP) Units completed and transferred out Units of Ending Work in Process Direct materials Direct labor Factory overhead Equivalent units of production (EUP) Exercise 8 Calculate the cost per equivalent unit of production (EUP) assuming that beginning WIP inventory included $360 of direct materials, $1350 of direct labor, and the predetermined overhead rate is 160%. During April, Our Co. incurred $4320 direct material costs, and $18900 direct labor costs. Assume the EUP for direct materials equals 600 units. EUP for direct labor and factory overhead equals 582 units. Cost Per Equivalent Unit (EUP) Direct Materials Direct Labor Factory Overhead Costs: Cost of beginning work in process Costs added to production during period Total costs Equivalent units of production (EUP) Cost per EUP (round 2 decimals)

Answer 1

Working Exercice 6 Physical Unit Flow Units to be accounted for: Beginning work in progress Units Started this period Total Units to be accounted for 540+60-90 510 600 540 Units accounted for as follows Completed and transferred out Ending goods in process Total units accounted fo ras follows 60 600 Exercice 7 Direct Material 540 Direct labour 540 Facatory Overhead 540 Workings Direct Facatory Direct labour Material Overhead 540 x 100% 540 x 100% 540 x 100% Equivalent Units of Production(EUP) Units Completed and transferred out Units of Ending work in Process Direct Material Direct labour Facatory Overhead Equivalent Units of Production(EUP) 60 x 100% 60 x 70% 60 x 70% 600 582 582 Exercice 7 Costs Cost of beginning work in process Cost added to production during period Total Cost Equivalent Units of Production (EUP) Cost per Equivlant unit Cost per equivlent unit(EUP) Direct Direct Facatory Material labour Overhead $ 360 $ 1,350 $ 2,160 $ 4,320 $ 18,900 $ 30,240 $ 4,680 $ 20,250 $ 32,400 600 582 582 $ 7.80 $ 34.79 $ 55.67