Question Hep car seats. Its cosing system ulionas two cost canegoies disct mater

Question

Question Hep car seats. Its cosing system ulionas two cost canegoies disct materials and conversion costs. Each product must pass through Departmart A and Department B costs ane alocaled evenly fhroughout production Data for Department A for February 2017 are Werk n process, begrning rrventory, 50% complete for materals. 25% compile lor converso, Units started daning Fabruary work r, process, ending inventory, 40% complete for materials, 10% complete for convero 800 unts 1.000 unt 50 unts Costs for Department A for February 201? are Work in process, begiming invantory

Explanation / Answer

Answer is $2,000

Explanation:

UNITS TO ACCOUNT FOR: Beginning Work in Process units 400 Add: Units Started in Process 1,000 Total Units to account for: 1,400 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 400 Units started and completed 750 (Balancing Figure) Ending Work in Process 250 Total Units to be accounted for: 1,400 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 50% 200 75% 300 Units started and completed 100% 750 100% 750 Ending Work in Process 40% 100 10% 25 Total Equivalent units 1,050 1,075 TOTAL COST TO ACCOUNT FOR: Material Conversion Cost Added during May 10,500 43,000 Total Cost to account for: 10,500 43,000 Total Cost to account for: 53,500 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 10,500 43,000 Equivalent Units 1,050 1,075 Cost per Equivalent unit 10 40 Ending Work in process (250 units) Equivalent unit Cost per EU Total Cost Material 100 10 1000 Conversison Cost 25 40 1000 Total cost of Ending Work in process: 2,000

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