Question

98,000 $ 133,000 $97,000

Answer 1

	Physical unit	Units
a	Beginning work in process	41,000.00
	Add: Number of units started	66,000.00
	Less: Ending work in process	(89,000.00)
	Number of units completed	18,000.00
			Direct Material		Conversion
b	Equivalent units;	units	% of completion	Equivalent units	% of completion	Equivalent units
	Units completed during the year(21% already completed during the previos period )	18,000.00	79%	14,220.00	79%	14,220.00
	Ending work in process of 23,000 units included in the beginning work in process	23,000.00	53%	12,190.00	53%	12,190.00
	Ending work in process of 66,000 units, which was started during the current period	66,000.00	53%	34,980.00	53%	34,980.00
	TOTAL EQUIVALENT UNITS			61,390.00		61,390.00
	Note:1. Here it is assumed that both the direct material and conversion costs are completed in the equal percentage of proportion.
	2. Assumed that the costs incurred during the previous period is related to 18,000 physical units started during the previous period and completed during the current period.
	3. 23,000 physical units included in the beginning work in process is not started in the previous period. Therefore, % of completion of those 23,000 units is 0% in the beginning work in process.
c		Direct Materials	Conversion costs	Total
	Current period costs ($ )	97,000.00	147,000.00	244,000.00
	Equivalent units ( units )	61,390.00	61,390.00	61,390.00
	Cost per equivalent unit ($ )	1.58	2.39	3.97
d	Reconciliation	Direct Material ($ )	Conversion costs ($ ) Total ($ )
	1. Units completed
	Already incurred during the previous period	35,000.00	98,000.00	133,000.00
	Cost incurred during the current period ( 14,220 eq.units)	22,468.48	34,050.17	56,518.65
	Total	57,468.48	132,050.17	189,518.65
	2. Ending inventory (89,000 physical units/ 47,170 eq. units )	74,531.52	112,949.83	187,481.35