Given the following information, please complete the following reports for the m

Question

Given the following information, please complete the following reports for the month of December:

1. Equivalent units
2. Unit cost analysis
3. Cost summary report

Unit started during the month 6,000
Units completed during the month 4,000 (transferred to finished goods)
Ending Inventory ?????

There was no beginning inventory

Ending inventory was 100% complete for material and 50% complete for conversion costs.

Total material costs $12,000
Total conversion costs 15,000

What journal entry would be made at the end of the month?

Explanation / Answer

1 Equivalent units Materials Conversion Beginning Inventory 0 Units completed 4,000 100% 4,000 100% 4,000 Closing Inventory 2,000 100% 2,000 50% 1,000 Total units 6,000 5,000 2.Unit Cost Analysis Material cost per Equivalent unit= $12,000/6,000 $2 Conversion cost per Equivalent unit= $15,000/5,000 $3 3.Total Cost per Equivalent unit= $2 + $3=$5 Journal at the end of the month Finished Goods Inventory 20,000          Work in Process 20,000 (To record transfer of units to finished goods)

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