2. Consider the following data for the Assembly Division of Fenton Watches Ine U

Question

2. Consider the following data for the Assembly Division of Fenton Watches Ine Units Percentage Complete Materials Coaversion 90% Beginning work in 80 Started in May 500 Completed during 460 60% 30% Ending work in process (May 31) Materials Beginming work in $493,360 Coeversion 91,040 added $3 220,000 $1,392,000 during Required Assume the Assembly Division uses weighted average method. i. Compule the equivalent units for the direet materials and conversion costs i. Cempute the cost per equivalent units for direct materials and conversion iti. Determine the total costs of ending work in process iv. Determine the total costs of units transferred out of the Assembly Division. v. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in the beginning inventory and costs added during the period 3. Refer to the information in question 2 above. Suppose the Assembly Division at enon Watches Inc. uses FIFO method of process oosting instead of the weighted average method Required Compute the equivalcnt units of production for the month of May. i. Hi. Compute the cost per equivalent unit for the month of May ii. Determine the total cost of ending work in perocess inventory. iv. Determine the total cost of units transferred out Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in the beginning inventory and costs added during the period. V.

Explanation / Answer

Req 1: Equivalent Units statement Material Conversion Units Input Particulars Units Output Equivalent units % complete Equivalent units % complete 80 Opening WIP 500 Input Finished Goods 460 460 100% 460 100% Closing WIP 120 72 50% 36 35% 580 580 532 496 Req 2:Statement Showing cost per unit Cost of Opening WIP Current Cost Total Equivalent units Cost per unit Material 493360 3220000 3713360 532 6980 Conversion 91040 1392000 1483040 496 2990 Cost per unit $9970 per unit Req 3&4 Cost of production summary Total cost of Completed Goods 4,586,200 (460 units@9970 per unit) Cost of Closing WIP 610200 Material (72*6980) 502560 Conversion(36*2990) 107640

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