Overton Company has gathered the following information. Units in beginning work

Question

Overton Company has gathered the following information.

Units in beginning work in process 20,000

Units started into production 164,000

Units in ending work in process 24,000

Percent complete in ending work in process:

Conversion costs 60 %

Materials 100 %

Costs incurred:

Direct materials $101,200

Direct labor $164,800

Overhead $184,000

Instructions

(a) Compute equivalent units of production for materials and for conversion costs.

(b) Determine the units costs of production

(c) Show the assignment of costs data for September. Materials are entered at the begining of the process.

Explanation / Answer

(a) Schedule of equivlent units of productions Material Direct Labour Overhead Percentage of completion Equivlent Units Percentage of completion Equivlent Units Percentage of completion Equivlent Units Beginning 20000 Entered into productions 164000 Completed during the period 160000 100% 160000 100% 160000 100% 160000 Ending work in process 24000 100% 24000 60% 14400 60% 14400 Equivlent Units 184000 174400 174400 (b) Schedule of Unit cost of production Total Cost Material Direct Labour Overhead Cost Incurred 450000 101200 164800 184000 Equivlent Units 184000 174400 174400 Cost per Equivllent Unit      0.55      0.94      1.06

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