Use the following information to perform the calculations requested below, assum
ID: 2447352 • 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: 6,000 units, 100 percent complete as to direct materials, 75 percent complete as to conversion costs
Ending work in process inventory: 18,000 units, 100 percent complete as to direct materials, 65 percent complete as to conversion costs
Units started during the month: 44,000
a. Calculate units completed and transferred out during the month.
b. Calculate units to be accounted for during the month.
c. Calculate equivalent units for conversion costs.
d. Calculate equivalent units for direct materials.
Physical Units
Beginning inventory (units started last period)
Equivalent Units
Units started this period
Direct Materials
%
Conversion Costs
%
Units to be accounted for
Units completed and transferred out
Ending inventory (units
started but not
completed this period)
Units accounted for
Physical Units
Beginning inventory (units started last period)
Equivalent Units
Units started this period
Direct Materials
%
Conversion Costs
%
Units to be accounted for
Units completed and transferred out
Ending inventory (units
started but not
completed this period)
Units accounted for
Explanation / Answer
Ending inventory (units
started but not
completed this period)
Physical Units Beginning inventory (units started last period) 6000 Equivalent Units Units started this period 44000 Direct Materials % Conversion Costs % Units to be accounted for 50000 Units completed and transferred out 32000 50000-18000] 32000 100 32000 100Ending inventory (units
started but not
completed this period)
18000 18000 100 11700 [18000*.65] 65 Units accounted for 50000 50000 43700