Cost of Units Completed and in Process The charges to Work in Process—Assembly D

Question

Cost of Units Completed and in Process

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.

Cost per equivalent units of $1.90 for Direct Materials and $4.30 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

b. Did the production costs change from the preceding period?
Yes

c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?
Increase

Work in Process—Assembly Department Bal., 4,000 units, 30% completed 12,400 To Finished Goods, 92,000 units ? Direct materials, 94,000 units @ $1.9 178,600 Direct labor 286,700 Factory overhead 111,480 Bal. ? units, 30% completed ?

Explanation / Answer

a 1. Cost of beginning work in process inventory completed this period. 12040 (4000*0.7*4.3) 2. Cost of units transferred to finished goods during the period. 570400 92000*(1.9+4.3) 3. Cost of ending work in process inventory. 19140 (6000*1.9)+(6000*4.3*0.3) 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. 6.11 (12400+12040)/4000 b Yes , It changed from $6.11 to $6.2 c Increased from $4.21 (6.11-1.9) to $4.3

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