Question

2. Cell Race produces cellular phones in large quantties. For simplicity, assume that the company has two departments, assembly and testing. The manufacturing costs in the assembly department during February were as follows: (Click the lcon to view the manufacturing costs in the assembly department.) There was no beginning inventory of work in process. Suppose work on 14,000 phones was begun in the assembly department during February, but only 10,000 phones were fuly completed Al the parts had been made or placed in process, but only half the conversion sts had been corpleted允r each of the phones stil in process. 1. Compute the equivalent units and unit costs for February 2. Compute the costs of units completed and transferred to the testing department. Also compute the cost of the ending work in process Requirement 1. Compute the equivalent units and unit costs for February Begin by computing the equivalent units. Equivalent Units Physical Units Direct Flow of Production Materials Conversion Started and completed Work in process, ending inventory Units accounted for Work done to date Now compute the units oosts for February. (Round to the nearest cent.) Total Costs Direct Materials Conversion Divide by) Unit costs Requirement 2. Compute the costs of units compieted and transferred to the testing department. Also compute the cost of the ending work in process. Total Costs Direct Materials Conversion Completed and transferred out Work in process, ending Total costs accounted for 1:Data Table Direct materiais added Conversion costs $ 47,600 Direct labor $ 54,000 24,000 Factory overhead 78,000 Assembly costs to account for $ 125,600 O Work in process, ending (2) O O Work in process, ending O Completed and transferred out O Costs to account for O Equivalent units of work done to date O Completed and transferred out O Costs to account for O Equivalent units of work done to date

Answer 1

Requirement 1:

	Equivalent Units
Flow of Production	Physical Units	Direct Materials	Conversion
Started and completed	10,000	10,000	10,000
Work in process, ending inventory	4,000	4,000	2,000
Units Accounted for	14,000
Work done to date		14,000	12,000

	Total Costs	Direct Materials	Conversion
(1)		47,600	78,000
Divide by (2)		14,000	12,000
Unit Costs		3.4	6.5

Workings:

Work in process ,ending inventory = 4,000 * 50% (completion percentage) =2000 units

Requirement 2

	Total Costs	Direct Materials	Conversion
Completed and transferred out	99000	34000 [10,000*3.4]	65000 ]10,000*6.5]
Work in process,ending	26600	13600 [4,000*3.4]	13000 [2,000*6.4]
Total Costs to account for	125600	47600	78000