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Theinventory at June 1 and costs charged to Work in Process -Department 60 durin

ID: 2433817 • Letter: T

Question

Theinventory at June 1 and costs charged to Work in Process -Department 60 during June are as follows:

3,600 units, 70% completed

$ 59,472

Direct materials, 31,500 units

378,000

Direct labor

243,440

Factory overhead

182,580

  Total cost to beaccounted for

$863,492

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During June, 31,500 units were placed into production and 30,800units were completed, including those in inventory on June1.  On June 30, the inventory of work in processconsisted of 4,300 units which were 50%completed.  Inventories are costed by the first-in,first-out method and all materials are added at the beginning ofthe process.

Determine the following, presenting your computations:

(a)

equivalent units of production forconversion cost

(b)

conversion cost per equivalentunit

(c)

total and unit cost of finishedgoods started in prior period and completed in the currentperiod

(d)

total and unit cost of finishedgoods started and completed in the current period

(e)

total cost of work in processinventory at June 30

3,600 units, 70% completed

$ 59,472

Direct materials, 31,500 units

378,000

Direct labor

243,440

Factory overhead

182,580

  Total cost to beaccounted for

$863,492

========

Explanation / Answer

x.Xle="line-height: normal">(a) equivalent units of production for conversion cost.   = 30,430 units as shown in the table below