Question

Bal., 5,000 units, 35% completed Direct materials, 118,000 units @ Work In Process --Assembly Department 15,850 To Finished Goods, 115,000 units 200,600 $1.7 Direct labor 381,200 Factory overhead 148,225 Bal., 2 units, 55% completed Cost per equivalent units of $1.70 for Direct Materials and $4.50 for Conversion Costs. a. Based on the above data, determine the different costs listed below. If required, round your interim calculations to two decimal places. 1. Cost of beginning work in process inventory completed this period Х 2. Cost of units transferred to finished goods during the period 3. Cost of ending work in process inventory 4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent) b. Did the production costs change from the preceding period? OLIO c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the came for the current period?

Answer 1

Pagea) 3 cost g ending wiP inventory :- 8000 X 1.7+ 8000 X 55X4.5 = 33,400 Cost per unit the completed begloping WIP Povertory :- Cost d beggiong WP iovento ay 30475 $6.095 cinits of beginnig wil inventory 5000 b 5 Yes . The production Cost hes increased. il, previay yo, production cost = 6.095. Current yo, production cost 1.70+4.5= 6.2 :: production cost has ppcreased. ] Yes increased. locrazed by $ 6.2 6.095 = . 105 $ per cuit

Page-ol) al ® Cost of begioning WIP Boxestoras Completed this period :- Beginning WIP cost + Beginning wil x cost per equiralent. equivalent units 15,850 + 5000 x C1-357) x 4.5 = 30,475 cul @ Cost Units toans forred to finished goods during the poriad: Cost begginning WIP inventooy + cost d units started and completed. To findout cost of corits started and compted frost need ending units of WIP. in Ending cinits? directmaterial Finished g wil units = 5000 + 118,000 - 115000 -- 8000 unist . units started and compleed 3 direct material units - Erding urls y WIP = 118,000 – 8000 = 110000 units . in Cost of units transforred to ? I wipit, Begimsigurit + goods nits firished goods during this poved$ 30,475+ 110,000 XT-70+4-5) -712,475