This is a work in process inventory problem. I want to make sure I\'m determinin

Question

This is a work in process inventory problem. I want to make sure I'm determining the "whole units" correctly, specifically, the ending balance and the started and completed units. The question is actually asking about various related costs, but I want to make sure I'm determing the whole units correctly first. The following is given: Beginning balance, 7000 units, 65% completed; 165,000 units started; and 161,000 units to finished goods. I've attached an image of the T account for convenience.

I thought that ending balance would be 7000+165000-161000= 11000 units

and

started and completed: 161000-7000= 154000 units

Work in Process-Assembly Department Bal., 7,000 units, 65% completed Direct materials, 165,000 units @ $2.10 Direct labor Factory overhead Bal. ? units, 25% completed 27,895 To Finished Goods, 161,000 units 346,500 355,300 138,220 a. Based on the above data, determine the different costs listed below

Explanation / Answer

The statrted and completed is 161000 as this is transferred to finished goods.

Note: The opening balance is given lumsum for direct material and conversion Cost so I have taken 7000*2.1 as direct material and remaining as conversion cost

Ending Inventory 11000 Cost of ending Inventory 31609.7 Cost of finished goods 836305.3

Note: The opening balance is given lumsum for direct material and conversion Cost so I have taken 7000*2.1 as direct material and remaining as conversion cost

Equivalent Units Flow Of Units Physical Units Direct Material Conversion Cost Units to be accounted for Beginning work in process inventory 7000 Units started this period 165000 Total u nits to be accounted for   Ans A 172000 Units accounnted for: Completed and transferred out (b) 161000 161000 161000 Ending work in progress inventory© Ans 1 11000 11000 2750 Total units to be accounted for (f)      172000 172000 163750 Flow of Cost Cost in the begnning work in progress inventory 27895 14700 13195 Cost added in current period 840020 346500 493520 Total Cost to be accounted for (e)     867915 361200 506715 Cost per equivalent unit (a)    (e/f) 5.19 2.10 3.09 Cost accounted for Cost assigned to units transferred out (a*b) Ans 2 836305.3 338100.00 498205.28 Cost in ending work in progress inventory (a*c) Ans 1 31609.7 23100.00 8509.72 Total Cost accounted for    867915.00 361200.00 506715.00

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