Question

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 14,775 To Finished Goods, 115,000 units Bal., 5,000 units, 35% completed 212,400 Direct materials, 118,000 units @ $1.8 297,500 115,675 Direct labor Factory overhead Bal. ? units, 60% 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 "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Whole Units Equivalent Units Direct Materials Equivalent Units Conversion Inventory in process, beginning Started and completed Transferred to finished goods Inventory in process, ending Total units c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent. Costs Per Equivalent Unit Direct Materials $ Conversion d. Cost of the units started and completed during the period.

Answer 1

Answers

• [a]

Units in WIP at the end
= 5000 + 118000 – 115000
= 8,000 units

• [b]

	Whole units	EU for DM	EU for Conversion
Inventory in Process, Beginning	5,000	-	3,250
Started and completed	110,000	110,000	110,000
Transferred to finished goods	115,000	110,000	113,250
Inventory in Process Ending	8,000	8,000	4,800
Total	123,000	118,000	118,050

• [c]

Direct Material = $ 212400 / 118000 units = $ 1.80
Conversion = ($297500 + 115675) / 118050 = $ 3.50

• [d]
  Cost of Units started and completed
  = 110000 units x (1.80 + 3.50)
  = 110000 x 5.30
  = $ 583,000