The Blending Department of Bavarian Chocolate Company had 2300 units in work in

Question

The Blending Department of Bavarian Chocolate Company had 2300 units in work in process at the beginning of the period, which were 60% complete. During the period, 25,700 units were completed and transferred to the Packaging Department. There were 2,600 units in process at the end of the period, which were 20% complete. Direct materials are placed into process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. Use the table provided below Whole Units Equivalent Units Direct Materials Conversion Units charged to production: Inventory in process, beginning Received from materials storeroom Total units accounted for by the Department Units to be assigned cost: Inventory in process, beginning ( Started and completed Transferred Inventory in process, ending Total units to be assigned cost complete) complete) The costs per equivalent unit of direct materials and conversion in the Mixing Department of Marvelous Marshmallow Company are S0.45 and $0.15, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Inventory in process, beginning of period Started and completed during the period Transferred out of Filling (completed) Inventory in process, end of period Total units to be assigned costs 1,200 38,800 40,000 2,480 42,480 38,800 38,800 45,000 The beginning work in process inventory had a cost of $25,000. Determine the cost of completed and transferred-out production and the ending work in process inventory Use the table on the following page to complete

Explanation / Answer

Solution 1:

Solution 2:

Bavarian choclate company Belnding Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 2300 Units started this period (25700+2600-2300) 26000 Total unit to be accounted for 28300 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 40% 2300 0 920 Started and completed currently 23400 23400 23400 Transferred 25700 23400 24320 Units in ending WIP
Material - 100%
Conversion - 20% 2600 2600 520 Total units accounted for 28300 26000 24840

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