eBook Equivalent Units of Production and Related Costs The charges to Work in Pr
ID: 2517503 • Letter: E
Question
eBook Equivalent Units of Production and Related Costs The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as fo Show Me How Calculator beginning of production. Work in Process-Assembly Department Bal, 4,000 units, 55% completed Direct materials, 94,000 units@$1.5 Direct labor Factory overhead Bal. 2 units, 50% completed To Finished Goods, 92,000 units 13,040 141,000 227,200 88,320 Determine the following a. The number of units in work in process inventory at the end of the period. 6,000 units Feedbacik 7 Check My Work Units in ending work in process represent units that have been started in the department but have not been completed, and ther goods b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0 Work in Process-Assembly DepartmentExplanation / Answer
a. The number of units in work in process inventory at the end of the period:
(4000+94000) – 92000 = 6000 units
b.
Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
Whole units
Equivalent Units Direct Materials
Equivalent Units Conversion
Inventory in process, beginning
4000
0
(4000 x .55) = 2200
4000 – 2200 = 1800
Started and completed
88000 (92000 – 4000)
88000
88000
Transferred to finished goods
92000
88000
89800
Inventory in process, ending
6000
6000
3000(6000 x 50%)
Total units
98000
94000
92800
c.
Costs Per Equivalent Unit
Direct Materials 141000/94000
1.5
Conversion 227200+88320=315520/92800
3.4
d. Cost of the units started and completed during the period
(1.5 + 3.4) x 88000 = 431200
Whole units
Equivalent Units Direct Materials
Equivalent Units Conversion
Inventory in process, beginning
4000
0
(4000 x .55) = 2200
4000 – 2200 = 1800
Started and completed
88000 (92000 – 4000)
88000
88000
Transferred to finished goods
92000
88000
89800
Inventory in process, ending
6000
6000
3000(6000 x 50%)
Total units
98000
94000
92800
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