Question

Ben’s Brushes Inc. manufactures electric toothbrushes. The brushes are manufactured in 2 sequential processes: Interior and Assembly. Information related the Interior Department for the month of October can be summarized as follows:

Interior Department:

• Beginning units: 3,900 – 70% completed
• Ending units: 3,000 – 30% completed
• Units started this month: 9,000
• Direct materials costs in beginning WIP: $1,980
• Conversion costs in beginning WIP: $4,080
• Direct materials costs incurred this month: $13,500
• Conversion costs incurred this month: $24,000
• In the Interior Department, direct materials are added at the beginning of the process while conversion costs are added uniformly throughout the assembly process.

Instructions: Compute each of the following items, showing all work for partial credit. You do NOT have to put your answers in the blanks shown below.

Mater.       Conver. Costs

______      ______      1. Equivalent units for materials and conversion costs

______      ______      2. Costs per equivalent units for materials and conversion costs

______      ______ 3. Total cost assigned to unit transferred out

______      ______ 4. Total cost of ending work in process

Answer 1

Total cost to Account fr:
Cost of Beginingg WIP				6060
Current cost incurred				37500
Total cost to Account fr:				43560
Total cost accounted fr				43560
Difference				0
UNITS TO ACCOUNT FOR:
Beginning Work in Process units					3,900
Add: Units Started in Process					9,000
Total Units to account for:					12,900
UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out					9,900
Ending Work in Process					3,000
Total Units to be accounted for:					12,900
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units complted			9900	100%	9,900	100%	9,900
Ending Work in Process			3000	100%	3,000	30%	900
Total Equivalent units			12900		12,900		10,800
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Beginning work in Process				1,980		4,080
Cost Added during May				13,500		24,000
Total Cost to account for:				15,480		28,080
Equivalent Units				12,900		10,800
Cost per Equivalent unit				1.2		2.6
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred out (9900 units)
				Equivalent unit	Cost per EU	Total Cost
Material				9,900	1.2	11880
Conversion Cost				9,900	2.6	25740
Total Cost of Units completed and transferred out:						37620
Ending Work in process (3000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				3,000	1.2	3600
Conversison Cost				900	2.6	2340
Total cost of Ending Work in process:						5,940
Total cost accounted for						43,560