Use the following information to perform the calculations requested below, assum
ID: 2422478 • Letter: U
Question
Use the following information to perform the calculations requested below, assuming that the average costing approach to a process costing system is being used. Beginning work in process inventory: 16,000 units, 100 percent complete as to direct materials, 85 percent complete as to conversion costs Ending work in process inventory: 36,000 units, 100 percent complete as to direct materials, 70 percent complete as to conversion costs Units started during the month: 59,000
a. Calculate units to be accounted for during the month.
b. Calculate units completed and transferred out during the month.
c. Calculate equivalent units for direct materials.
d. Calculate equivalent units for conversion costs.
Explanation / Answer
a. Calculate units to be accounted for during the month. 75000
b. Calculate units completed and transferred out during the month.39000
c. Calculate equivalent units for direct materials. 75000
d. Calculate equivalent units for conversion costs.64200
Inputs WIP Units 16000 Unit Started 59000 Total Units Accounted for 75000 Out Put Units Completed ==16000+59000-36000 39000 WIP inventory 36000 Total Units Accounted for 75000 Material Conversion Units Completed ==16000+59000-36000 39000 39000 Units In Ending WIP 36000 25200 equivalent units 75000 64200