Print Item Cost of Units Completed and in Process The charges to Work in Process

Question

Print Item Cost of Units Completed and in Process 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 23,380 280,500 To Finished Goods, 161,000 units Bal., 7,000 units, 40% completed Direct materials, 165,000 units o Direct labor Factory overhead Bal, 2 units, 35% completed Cost per equivalent units of $1.70 for Direct Materials and $4.40 for Conversion Costs 513,400 199,620 a.Based on the above data, determine the different costs listed below If required, round your interim calculations to two decimal places . 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? 5 more Check My Work uses remaining

Explanation / Answer

a1) Cost of Beginning WIP Inventory Completes this Period :-

= Beginnig WIP + Conversion Cost Incurred During Period

= $23380 + ($4.4*4200)

= $41860

Conversion Equialent Unit :-

= 7000*60%

= 4200 Units

a2) Cost of units transferred to finished goods during the period :-

= Units Started and Commpleted Cost during the Period + Cost of Beginning WIP Inventory

= ((154000*$1.7)+(154000*$.4.4)) + $41860

= $939400 + $41860

= 981260

Unit Transferred to Finished Goods = Finished Goods - Beginning Balance of Inventory

= 161000 - 7000

= 154000 units

a3) Ending Unit = 7000+165000-161000 = 11000 units

Cost of Ending WIP Inventory = Material + Conversion

= (11000*$1.7) + (11000*$4.4)

= $18700 + $48400

= $67100

a4) Cost Per Unit of the completed beginning WIP :-

= Cost of Beginning WIP/ Units of beginning WIP Inventory

= $41860 / 7000

= $5.98 per unit

b) Yes, Production Cost is Changed.

Production Cost = $1.70 + $4.40 = $6.1 Per unit

c) Previous period conversion Cost = $5.98 - $1.7

= $4.28

Conversion Cost per Equivalent Unit Increase for the current period.

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