Question

The following information applies to the questions displayed below! + 4 of 6 The Cariberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Percent of Direct Materials Added Percent of Conversion Assembly Department Beginning work in process Units transferred out Ending work in process Units 2.000 9.000 3,000 sex $1,581 (includes $996 for direct materials and 5585 for conversion) Beginning work in process inventory Assembly dept Costs added during the month Direct aterials Conversion $ 10,404 $ 12,285

Answer 1

Solution

Equivalent units of production with respect to conversion-FIFO
	Units	% conversion	EUP-Conversion	% conversion	EUP-Conversion
Beginning Work in process units	2000	40%	800	60%	1200
Units started and completed	7000	100%	7000	100%	7000
Ending work in process-Units	3000	80%	2400	30%	900
Total	12000		10200		9100

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	2,000	60%	40%	40%	60%
Units introduced	10,000
Total units to be accounted for	12,000
Completed and Transferred unit	9,000	0%	0%	100%	100%
Ending WIP	3,000	0%	0%	80%	30%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	2,000	40%	800	60%	1,200
From units started/Introduced	7,000	100%	7,000	100%	7,000
Total	9,000		7,800		8,200
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	3,000	80%	2,400	30%	900
Total EUP	12,000		10,200		9,100