Equivalent Units of Production and Related Costs The charges to Work in Process—

Question

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 follows. All direct materials are placed in process at the beginning of production.

Determine the following:

a. The number of units in work in process inventory at the end of the period.
units

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Units in ending work in process represent units that have been started in the department but have not been completed, and therefore have not been transferred out to finished goods.

b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".

c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

d. Cost of the units started and completed during the period.
$

Work in Process-Assembly Department Bal., 8,000 units, 70% completed 34,720 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $2.1 394,800 Direct labor 457,300 Factory overhead 177,820 Bal. ? units, 70% completed ?

Explanation / Answer

a) No of units ending work in process = 8000+188000-184000 = 12000 units

b) Equivalent unit :

c) Cost per equivalent unit :

Material = 394800/188000 = 2.1 per equivalent unit

Conversion = 635120/186800 = 3.4 per equivalent unit

d) Cost of units started and completed = (2.1+3.4)*176000 = 968000

Whole unit Equivalent Units
Direct Materials Equivalent Units
Conversion Inventory in process, beginning 8000 0 2400 Started and completed 176000 176000 176000 Transferred to finished goods 184000 176000 178400 Inventory in process, ending 12000 12000 8400 Total units 196000 188000 186800

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