Balance Date Item Debit Credit Debit Credit Sept. 1 Bal., 7,200 units, 60% compl

Question

                                         Balance         Date         Item         Debit         Credit         Debit         Credit         Sept. 1          Bal., 7,200 units, 60%   completed                           105,552                  30         Direct materials, 66,000 units         805,200                  910,752                  30         Direct labor         105,240                  1,015,992                  30         Factory overhead         145,324         ?         1,161,316                  30         Goods finished, ? units                           ?                  30         Bal., 5,800 units, 80% completed                           ?                  Cost of beginning work in process inventory completed in Sept. (?)         Cost of units transferred to the next department during Sept. (?)         Cost of ending work in process inventory on Sept. 30. (?)         Costs per equivalent unit of direct materials and conversion included   in the Sept. 1 beginning work in process. If required, round to two decimal   places.   Direct materials cost per equivalent unit: ?     Conversion cost per equivalent unit: ?         The Sept. increase or decrease in costs per equivalent unit for   direct materials and conversion from the previous month. If required round to   two decimal places.   Change in direct materials cost per equivalent unit: increase or   decrease. Amount: ?   Change in conversion cost per equivalent unit: increase or decrease.   Amount: ?      

Explanation / Answer

STATEMENT SHOWING EQUIVALENT UNITS AND COST PER EQUIVALENT UNIT

PARTICULARS

INPUT

OUTPUT

%

DIRECT MATERIALS

%

CONVERSION COST

[ DIRECT LABOUR +

FACTORY

OVERHEAD]

OPENING WIP

7200

ADD:-UNITS INTODUCED DURING THE YEAR

66000

LESS:-CLOSING WIP

5800

OPENING WIP COMPLETED

7200

0%

40%

40% of 7200

=2880

UNITS INTRODUCED & COMPLETED DURING THE YEAR

67400-7200

=60200

100%

100% OF 60200

=60200

100%

100% OF 60200

=60200

CLOSING WIP

5800

100%

100% OF 5800

=5800

80%

80% OF 5800

=4640

TOTAL EQUIVALENT UNITS

66000

67720

COST OF DIRECT MATERIALS

805200

CONVERSION COST

[105240+145324]

=250564

EQUIVALENT COST PER UNIT

805200/66000

=12.2

250564/67720

=3.7

Cost of beginning work in process inventory completed in Sept. = 2880*3.7 +105552

=116208

Cost of units transferred to the next department during Sept = 105552+ 2880*3.7 + 60200*(12.2+3.7)

=1073388

Cost of ending work in process inventory on Sept. 30 = 4640*3.7+ 5800*12.2

= 87928

STATEMENT SHOWING EQUIVALENT UNITS AND COST PER EQUIVALENT UNIT

PARTICULARS

INPUT

OUTPUT

%

DIRECT MATERIALS

%

CONVERSION COST

[ DIRECT LABOUR +

FACTORY

OVERHEAD]

OPENING WIP

7200

ADD:-UNITS INTODUCED DURING THE YEAR

66000

LESS:-CLOSING WIP

5800

OPENING WIP COMPLETED

7200

0%

40%

40% of 7200

=2880

UNITS INTRODUCED & COMPLETED DURING THE YEAR

67400-7200

=60200

100%

100% OF 60200

=60200

100%

100% OF 60200

=60200

CLOSING WIP

5800

100%

100% OF 5800

=5800

80%

80% OF 5800

=4640

TOTAL EQUIVALENT UNITS

66000

67720

COST OF DIRECT MATERIALS

805200

CONVERSION COST

[105240+145324]

=250564

EQUIVALENT COST PER UNIT

805200/66000

=12.2

250564/67720

=3.7

Cost of beginning work in process inventory completed in Sept. = 2880*3.7 +105552

=116208

Cost of units transferred to the next department during Sept = 105552+ 2880*3.7 + 60200*(12.2+3.7)

=1073388

Cost of ending work in process inventory on Sept. 30 = 4640*3.7+ 5800*12.2

= 87928

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