Question

Overton Company has gathered the following information. Units in beginning work in process 22,000 Units started into production 182,000 Units in ending work in process 25,500 Percent complete in ending work in process: Conversion costs 60 % Materials 100 % Costs incurred: Direct materials $102,000 Direct labor $268,030 Overhead $187,400 . Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs The equivalent units of production Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Unit costs $ $ Show the assignment of costs to units transferred out and in process.

Answer 1

		Units
	Units in Beginning-WIP	22,000
	Add: Started in Production	182,000
	Total Units in Flow	204,000
	Units in Closing Inventory-WIP	25,500
	Units Completed	178,500
	Calculation of Equivalent Units:
	Units Transferred Out+Closing Units*Percentage of Completion
		Material	Conversion Cost
	Units Completed	178,500	178,500
	Units in Closing Inventory-WIP	25,500	25,500
	Percentage of Completion	1	60%
	Equivalent Units of Closing WIP	25,500	15,300
	Equivalent Units	204,000	193,800
	Costs Incurred	102,000	455430
	Equivalent Units	204,000	193800
	Cost Per Equivalent Unit	0.50	2.35
	Total Cost Per Unit	2.85