The following production data were taken from the records of the finishing depar

Question

The following production data were taken from the records of the finishing department for June: Inventory in process, June 1, 25% completed Transferred to finished goods during June Equivalent units of production during June 1,500 units 5,000 units 5,200 units Determine the number of equivalent units of production in the June 30, finishing department inventory assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs 200 units 1,000 units ?575 units 300 units Chapter 18 PowerP.pptx

Explanation / Answer

1 Equivalent Units physical unit Material/ Conversion Units to be accounted for Beginning WIP(25%) 1500 Units started 5800 Total 7300 Units accounted for Beginning WIP work during June(75%) 1500 1125 Units completed and transferred 3500 3500 Ending Wip(25%) 2300                           575 Ans is C 575 units Total 5800                        5,200 Equivalent units physical unit Material Conversion 3 Units to be accounted for Beginning WIP(100%/60%) 500 Units started 4840 Total 5340 Units accounted for Beginning WIP work during June(40%) 500 200 Units started and completed 4500 4500 4500 Ending Wip(100%/30%) 340 340 102 Total 5340                        4,840                         4,802 Cost Cost during the month 22252 150536 ÷ EUP                        4,840                         4,802 Cost per EUP in current period                          4.60                         31.35         35.95 Ans is B 35.95 4 Same question as 3 only answer option given at A 35.95 2 Equivalent units physical unit Material Conversion Units to be accounted for Units started 20000 Total 20000 Units accounted for Units started and completed 18000 18000 18000 Ending Wip(100%/30%) 2000 2000 600 Total 20000                     20,000                       18,600 Cost Cost during the month 100000 199500 ÷ EUP                     20,000                       18,600 Cost per EUP in current period                          5.00                         10.73         15.73 Cost of completed units 15.73 x 18000 $               283,140 Note: can you please check with your instructor, since option given is not matching with correct answer for question 2 image

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