Equivalent Units of Production and Related Costs The charges to Work in Process—

Question

Equivalent Units of Production and Related Costs

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.

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".

c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

d. Cost of the units started and completed during the period.
$

Work in Process-Assembly Department Bal., 6,000 units, 35% completed 13,620 To Finished Goods, 138,000 units ? Direct materials, 141,000 units @ $1.5 211,500 Direct labor 247,300 Factory overhead 96,140 Bal. ? units, 80% completed ?

Explanation / Answer

a) Ending work in process inventory = 6000+141000-138000 = 9000 Units

b) Equivalent unit of production :

c) Cost per equivalent unit :

Material = 211500/141000 = 1.50

Conversion = 343440/143100 = 2.40

d) Cost of units started and completed = (1.5+2.4)*132000 = $514800

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 6000 6000*0% = 0 6000*65% = 3900 Started and completed 132000 132000 132000 Transferred to finished goods 138000 132000 135900 Inventory in process, ending 9000 9000 9000*80% = 7200 Total Units 147000 141000 143100

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