What is the equivalent units of production for conversion? What is the cost per

Question

     

What is the equivalent units of production for conversion?

     

What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

     

What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

     

What is the cost of the units transferred out? (Use rounded cost per equivalent unit.)

     

Change the percentage completion with respect to conversion for the beginning inventory from 45% to 80%, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:

       

What is the equivalent units of production for conversion?

     

What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

     

What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

     

What is the cost of the units transferred out? (Use rounded cost per equivalent unit.)

     

Which of the following statements are true? (Select all that apply.)

    

A B C 1 Chapter 4: Applying Excel 2 3 Data 4 Beginning work in process inventory: 5    Units in process 200 6    Completion with respect to materials 10 % 7    Completion with respect to conversion 45 % 8    Costs in the beginning work in process inventory: 9       Materials cost $404 10       Conversion cost $6,210 11 Units started into production during the period 15,000 12 Costs added to production during the period: 13    Materials cost $245,921 14    Conversion cost $996,935 15 Ending work in process inventory: 16    Units in process 500 17    Completion with respect to materials 10 % 18    Completion with respect to conversion 50 % 19

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the equivalent units of production for materials?

     

(b)

What is the equivalent units of production for conversion?

     

(c)

What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

     

(d)

What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

     

(e)

What is the cost of the units transferred out? (Use rounded cost per equivalent unit.)

     

Requirement 3: Either print a copy of your worksheet or make a copy of the worksheet in your workbook before proceeding. You will need to refer back to this worksheet.

Change the percentage completion with respect to conversion for the beginning inventory from 45% to 80%, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:

A B C 1 Chapter 4: Applying Excel 2 3 Data 4 Beginning work in process inventory: 5    Units in process 200 6    Completion with respect to materials 10 % 7    Completion with respect to conversion 80 % 8    Costs in the beginning work in process inventory: 9       Materials cost $404 10       Conversion cost $6,210 11 Units started into production during the period 15,000 12 Costs added to production during the period: 13    Materials cost $245,921 14    Conversion cost $996,935 15 Ending work in process inventory: 16    Units in process 500 17    Completion with respect to materials 10 % 18    Completion with respect to conversion 50 % 19

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the equivalent units of production for materials?

       

(b)

What is the equivalent units of production for conversion?

     

(c)

What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

     

(d)

What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

     

(e)

What is the cost of the units transferred out? (Use rounded cost per equivalent unit.)

     

(f)

Which of the following statements are true? (Select all that apply.)

In the weighted-average method, the percentage completion of beginning inventory has no effect on the equivalent units of production. In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost per equivalent unit. In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost of the units transferred out.

Explanation / Answer

Solution 1:

a. Equivalant unit of production for material = 14750 units

b. Equivalant unit of production for conversion = 14950 units

c. Cost per equivalant unit of material = $16.70

d. Cost per equivalant unit of conversion = $67.10

e. Cost of unit transferred out = $1,231,860

Solution 3:

a. Equivalant unit of production for material = 14750 units

b. Equivalant unit of production for conversion = 14950 units

c. Cost per equivalant unit of material = $16.70

d. Cost per equivalant unit of conversion = $67.10

e. Cost of unit transferred out = $1,231,860

f. In the weighted-average method, the percentage completion of beginning inventory has no effect on the equivalent units of production.

In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost per equivalent unit.

In the weighted-average method, the percentage completion of beginning inventory has no effect on the cost of the units transferred out.

Computation of Equivalent unit of Production - Weighted Average Particulars Physical Units Material Conversion Unit completed & Transferred out (200 + 15000 - 500) 14700 14700 14700 Closing WIP: 500 Material (10%) 50 Conversion (50%) 250 Equivalent units of production 15200 14750 14950

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