116 Chapter 3 Process Cost Systems EX 3-11 Equivalent units of production and re

Question

116 Chapter 3 Process Cost Systems EX 3-11 Equivalent units of production and related costs 0BJ.2 he charges to Work in Process-Assembly Department for a period, together with infor- on concerning production, are as follows. All direct materials are placed in process a. 1,000 units at the beginning of production. Work in Process Assembly Depertment Bal, 1,600 units, 35% completed Direct materials, 29,000 units@ $9.50275,500 Direct labor Factory overhead Bal-2 units, 45% completed 17,440 To Finished Goods, 29,600 units SHOW ME HOW 84,600 9 258 Determine the following: a. The number of units in work in process inventory at the end of the period b. Equivalent units of production for direct materials and conversion c. Costs per equivalent unit for direct materials and conversion d. Cost of the units started and completed during the period EX 3-12 Cost of units completed and in process a. Based on the data in Exercise 3-11, determine the following OBJ. 2, 4 a. 1. $21,808 1. Cost of beginning work in process inventory completed this period 2. Cost of units transferred to finished goods during the period 3. Cost of ending work in process inventory 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent b. Did the production costs change from the preceding period? Explain

Explanation / Answer

Ex 3-11:-

a:- the number of units in work in process inventory at the end of period.

Opening balance in work in process + direct material units - finished goods units. 1600 + 29000 - 29600 = 1000 units

b:- Equivalent units of production for direct materials:-

(Finished goods units - opening balance in work in process) + work in process inventory at the end of period = (29600-1600) +1000 =29000

Equivalent units of production for conversion cost:-

1600×65% + (29600-1600)×100% + 1000×45% =1040 + 28000 + 450 =29490

c:- cost per equivalent units for direct materials:-

Direct materials =275500/29000 = $9.5

Cost per equivalent units for conversion cost:-

(Direct labour + factory overhead) / Equivalent units of production for conversion cost. (84600 + 39258) / 29490 = 123858/29490 = $4.2

d:- cost of the unit start and completed during the period :-

(29600-1600)× (9.5+4.2) =28000×13.7 = $383600

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