Question

Equivalent units of Production and Related Costs 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 Determine the following: a. The number of units in work in process inventory at the end of the period. units b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "O". Work in Process Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Whole Units Equivalent Units Equivalent Units Direct Materials Conversion Tuin en hanninn

Answer 1

a.

Units in ending work in process inventory:

= 9,000 + 40,000 - 41,500

= 7,500 units

b.

	Whole units	Direct material	Conversion
Inventory in process, beginning	9,000	0	5,400
Started and completed	32,500	32,500	32,500
Transferred to finished goods	41,500	32,500	37,900
Inventory in process, ending	7,500	7,500	2,250
Total units	49,000	40,000	40,150

c.

Cost per equivalent unit:

Direct material:

= $272,000 / 40,000

= $6.80

Conversion:

= ($80,000 + $40,450) / 40,150

= $3

d.

Cost of units started and completed:

= 32,500 X ($6.80 + $3)

= $318,500