Question

1. Given the following data, answer the questions below the table:

--------------------------------------------------------------------------------------------------------------------------------

Data
Beginning work in process inventory:
Units in process	100
Completion with respect to materials	75%
Completion with respect to conversion	30%
Costs in the beginning work in process inventory:
Materials cost	$1,877
Conversion cost	$1,912
Units started into production during the period	14,900
Costs added to production during the period:
Materials cost	$361,213
Conversion cost	$918,035
Ending work in process inventory:
Units in process	300
Completion with respect to materials	40%
Completion with respect to conversion	70%

--------------------------------------------------------------------------------------------------------------------------------

a) What is the equivalent units of production for materials?

b) What is the equivalent units of production for conversion?

c) What is the cost per equivalent unit for materials? (Round your final answer to 2 decimal places.)

d) What is the cost per equivalent unit for conversion? (Round your final answer to 2 decimal places.)

e) What is the cost of the units transferred out?

Answer 1

I have used Weighted average method, If FIFO is required please let me know

Solution

A)=14820 Units of material

B) = 14910 units if conversion

C) = 24.50 for material

D)= 61.70 for conversion

E)= Cost transferred 1,267,140

Working

Reconciliation of Units
A	Beginning WIP	100
B	Introduced	14,900
C=A+B	TOTAL	15,000
D	Transferred out	14,700
E=C-D	Ending WIP	300

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	14,700			100%	14,700	100%	14,700
Ending WIP	300			40%	120	70%	210
Total	15,000			Total	14,820	Total	14,910

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 1,877	$ 1,912	$ 3,789
Cost incurred during period		$ 361,213	$ 918,035	$ 1,279,248
Total Cost to be accounted for		$ 363,090	$ 919,947	$ 1,283,037
Total Equivalent Units		14,820	14,910
Cost per Equivalent Units		$                 24.50	$                   61.70	$             86.20

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 24.50	120	$             2,940.00	14,700	$        360,150.00
Conversion cost	$ 61.70	210	$          12,957.00	14,700	$        906,990.00
TOTAL	$ 1,283,037	TOTAL	$ 15,897	TOTAL	$ 1,267,140