Question

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 17,4401 To Finished Goods, 29,600 units Direct materials, 29,000 units @ 275,500 $9.50 Direct labor 84,600 Factory overhead 39,2581 Bal. 2 units, 45% completed Cost per equivalent units of $9.50 for Direct Materials and $4.20 for Conversion Costs. a. Based on the above data, determine the different costs listed below. 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. dell

Answer 1

1.

= $17,440 + (1,600 X 65% X $4.20)

= $21,808

2.

Units starts and completed:

= Units completed - Beginning units

= 29,600 - 1,600

= 28,000

= $21,808 + [28,000 X ($9.50 + $4.20)]

= $405,408

3.

Units in ending work in process inventory:

= 1,600 + 29,000 - 29,600

= 1,000

= (1,000 X $9.50) + (1,000 X $4.20 X 45%)

= $11,390

4.

= $21,808 / 1,600

= $13.63