Cost of Units Transferred Out and Ending Work in Process The costs per equivalen

Question

Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $1.95 and $1.00, respectively. The equivalent units to be assigned costs are as follows Equivalent Units Direct Materials Conversion 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 The beginning work in process inventory had a cost of $2,560. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar Completed and transferred-out production Inventory in process, ending 4,000 66,00066,000 70,000 1,200 71,200 66,000 3,000 69,000

Explanation / Answer

Answer 1. Cost of Production Report - Casting Department For the Month ended March 31 Materials Conversion Costs Total Cost per Equivalent Unit                                          1.95                                        1.00                            2.95 Assignment of Costs: Goods Units and Completed out WIP, Beginning                                              -                                              -                           2,560 Cost added to Beg. WIP in Current period                                              -                                       4,000                         4,000 (4,000 Units X $1) Total of Beginning Inventory                                              -                                       4,000                         6,560 Started and completed - 66,000 Units                                   128,700                                   66,000                     194,700 (66,000 units X $1.95) (66,000 units X $1) Total Cost of good units completed & transferred out                                   128,700                                   70,000                     201,260 WIP, Ending - 3,000 Units                                       5,850                                     1,200                         7,050 (3,000 units X $1.95) (1,200 units X $1) Total Cost accounted For                                   134,550                                   71,200                     208,310 Completed & Transferred Out                                   201,260 Inventory in Process, Ending                                       7,050 Answer 2. Particulars Physical Units Equivalent Units Conversion Costs Units Information Units accounted for Goods Units Completed & transferred out: From Beginning WIP                                       7,300                                         730 (10% conversion costs) . Started & Completed (81,600 - 7,300)                                     74,300                                   74,300 Work in process, Ending                                       4,900                                     2,450 (50% conversion costs) Equivalent units accounted for                                     86,500                                   77,480

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