1. The inventory at June 1 and costs charged to Work in Process—Department 60 du

Question

1. The inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows: 3,800 units, 80% completed ($25,000 materials, $35,400 conversion) $ 60,400 Direct materials, 32,000 units 368,000 Direct labor 244,000 Factory overhead 188,000 Total cost to be accounted for $860,400 During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 40% completed. Inventories are costed by the average cost method and all materials are added at the beginning of the process. Determine the following, presenting your computations: (20-176) (a) Equivalent units of production for conversion cost (b) Conversion cost per equivalent unit and material cost per equivalent unit. (c) Total and unit cost of finished goods completed in the current period (d) Total cost of work in process inventory at June 30

Explanation / Answer

a) Equivalent units of production % Materials % CC Completed & transferred 31,200 100% 31,200 100% 31,200 ending work in process 4,600 100% 4,600 40% 1840 Equivalent units of production 35,800 33,040 b) Cost per unit Materials CC total Beginning work in process 25,000 35,400 60,400 Cost added during the year 368,000 432000 800,000 total cost 393,000 467,400 860,400 Equilvalent units of production 35,800 33,040 cost per unit 10.97765 14.14649 25.12414 c) cost of completed units 31200*25.12414 783873.2 783873 d) Ending work in process materials 4600*10.97765= 50497 cc            1,840*14.14649= 26030 total ending work in process 76527

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.