Cost of Units Completed and in Process
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, 45% completed | 7,800 | To Finished Goods, 69,000 units | ? |
Direct materials, 71,000 units @ $1.7 | 120,700 | ||
Direct labor | 103,800 | ||
Factory overhead | 40,365 | ||
Bal., ? units, 20% completed | ? |
Cost per equivalent units of $1.70 for Direct Materials and $2.10 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 | $ |
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?
Yes
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 same
for the current period?
Increase
a1) Cost of Beginning WIP Inventory Completes this Period :-
= Beginnig WIP + Conversion Cost Incurred During Period
= $7800 + ($2.1*1650)
= $11,265
Conversion Equialent Unit :-
= 3000*55%
= 1650 Units
a2) Cost of units transferred to finished goods during the period :-
= Units Started and Commpleted Cost during the Period + Cost of Beginning WIP Inventory
= ((66000*$1.7)+(66000*$.2.1)) + $11,265
= $250,800 + $11,265
= 262,065
Unit Transferred to Finished Goods = Finished Goods - Beginning Balance of Inventory
= 69000 - 3000
= 66000 units
a3) Ending Unit = 3000+71000-69000 = 5000 units
Cost of Ending WIP Inventory = Material + Conversion
= (5000*$1.7) + (5000*$2.1)
= $8500 + $10500
= $19,000
a4) Cost Per Unit of the completed beginning WIP :-
= Cost of Beginning WIP/ Units of beginning WIP Inventory
= $11,265 / 3000
= $3.75 per unit
b) Yes, Production Cost is Changed.
Production Cost = $1.70 + $2.10 = $3.8 Per unit
c) Previous period conversion Cost = $3.75 - $1.7
= $2.05
Conversion Cost per Equivalent Unit Increase for the current period.
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...
Cost of Units Completed and in Process 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., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units Direct materials, 40,000 units 272,000 $6.80 Direct labor 80,000 Factory overhead 40,450 Bal., 2 units, 30% completed Cost per equivalent units of $6.80 for Direct Materials and $3.00...
Cost of Units Completed and in Process 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., 2,000 units, 55% completed 8,510 To Finished Goods, 46,000 units Direct materials, 47,000 units $2 94,000 Direct labor 146. Sool Factory overhead 57.000 Bal 2 units, 45% completed Cost per equivalent units of $2.00 for Direct Materials and...
Cost of Units Completed and in Process 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., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units ? Direct materials, 40,000 units @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed ? Cost per equivalent units of $6.80 for Direct...
Cost of Units Completed and in Process 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., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units ? Direct materials, 40,000 units @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed ? Cost per equivalent units of $6.80 for Direct...
Cost of Units Completed and in Process 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., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units ? Direct materials, 40,000 units @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed ? Cost per equivalent units of $6.80 for Direct...
Cost of Units Completed and in Process 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., 1,600 units, 35% completed 17,440 To Finished Goods, 29,600 units ? Direct materials, 29,000 units @ $9.50 275,500 Direct labor 84,600 Factory overhead 39,258 Bal. ? units, 45% completed ? a. Based on the above data, determine the...
Cost of Units Completed and in Process 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., 8,000 units, 40% completed 24,160 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $1.5 282,000 Direct labor 551,400 Factory overhead 214,480 Bal., ? units, 50% completed ? Cost per equivalent units of $1.50 for Direct...
Cost of Units Completed and in Process 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., 8,000 units, 65% completed 33,920 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $1.9 357,200 Direct labor 527,300 Factory overhead 205,120 Bal. ? units, 75% completed ? Cost per equivalent units of $1.90 for Direct...
Cost of Units Completed and in Process 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, 50% completed 10,500 To Finished Goods, 69,000 units ? Direct materials, 71,000 units @ $1.5 106,500 Direct labor 220,600 Factory overhead 85,775 Bal., ? units, 75% completed ? Cost per equivalent units of $1.50 for Direct...
Cost of Units Completed and in Process 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., 8,000 units, 70% completed 29,440 To Finished Goods, 184,000 units Direct materials, 188,000 units @ 244,400 $1.3 Direct labor 496,000 Factory overhead 192,940 Bal., 2 units, 65% completed Cost per equivalent units of $1.30 for Direct Materials and...