Equivalent units = Units transferred + Ending WIP x
Completion
Cost per equivalent unit = (Beginning Cost + Cost added) /
Equivalent units
a.
Physical Flow | % Materials | Material | % Conversion | Conversion | |
Units to account for | |||||
Beginning Work in process | 70000 | ||||
Units started | 350000 | ||||
Total Units to account for | 420000 | ||||
Units accounted for | |||||
Units transferred | 380000 | 100% | 380000 | 100% | 380000 |
Equivalent units in ending WIP | 40000 | 75% | 30000 | 25% | 10000 |
Total units accounted for | 420000 | ||||
Equivalent units of production | 410000 | 390000 |
b.
Material | Conversion | Total | |
Cost of beginning work in process | $ 86,000 | $ 36,000 | $ 122,000 |
Cost added during the production | $ 447,000 | $ 198,000 | $ 645,000 |
Total Cost | $ 533,000 | $ 234,000 | $ 767,000 |
Equivalent units of production | 410000 | 390000 | |
Cost per Equivalent unit | $ 1.30 | $ 0.60 | $ 1.90 |
c.
Material | Conversion | Total | |
Ending Work in process inventory | |||
Equivalent units | 30000 | 10000 | |
Cost per Equivalent unit | $ 1.30 | $ 0.60 | |
Cost of Ending Work in process inventory | $ 39,000 | $ 6,000 | $ 45,000 |
Units completed and transferred out | |||
Units transferred | 380000 | 380000 | |
Cost per Equivalent unit | $ 1.30 | $ 0.60 | |
Cost of Units transferred | $ 494,000 | $ 228,000 | $ 722,000 |
d.
Costs to be accounted for | |
Cost of beginning work in process | $ 122,000 |
Cost added during production | $ 645,000 |
Total Costs to be accounted for | $ 767,000 |
Costs accounted for as follows | |
Cost of Ending work in process | $ 45,000 |
Cost of Units transferred | $ 722,000 |
Total Costs accounted for | $ 767,000 |
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