The charges to Work in Process - Assembly Department for a period, together with

Question

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
Balance, 5,000 units, 35% completed 10,475
To finished Goods, 105,500 units
Direct Materials, 108,000 units @ $1.50 162,000
Direct labor 145,300
Factory overhead 47,525
Balance?? Units, 45% complete ?

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.

Explanation / Answer

(a) The number of units in work in process inventory at the end of period
= 113,000 - 105,500
= 7,500 units

(b) Equivalent units

Direct Materials = (105,500 - 5,000) + 7500 = 108,000 EU

Conversion Costs = 5,000 x 65% + (105,500 - 5000) x 100% + 7500 x 45% = 107,125 EU

(c) Cost per equivalent units

Direct Materials = $162,000/108000 = $1.5 per EU

Conversion Costs = (145300 + 47525)/107125 = $1.8 per EU

(d)Cost of the units start and completed during the period

= 100500 x (1.5 + 1.8)

= $331,650

Hope this helps!

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