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Please Show ALL Work The following information is provided by Abbott corporation

ID: 2474669 • Letter: P

Question

Please Show ALL Work

The following information is provided by Abbott corporation:

Work-in-process inventory January 1st 0 units

Units started 12,000 Units completed and transferred out 8,000

Work-in-process inventory December 31st 4,000

Direct materials $26,700

Direct labor $15,400

Manufacturing overhead $9,000

The units in ending work-in-process inventory were 80% complete for materials and 40% complete for conversion costs.

What are the total equivalent units for direct materials?

What are the equivalent units for conversion cost?

What is the cost per equivalent units for materials?

What is the cost per equivalent unit for conversion cost?

Determine the cost of ending work-in-process inventory.

Please Show ALL Work The following information is provided by Abbott corporation: Work-in-process inventory January 1st Units started Units completed and transferred out Work-in-process inventory December 31st 4,000 Direct materials Direct labor Manufacturing overhead 0 units 12,000 8,000 $26,700 $15,400 $9,000 The units in ending work-in-process inventory were 80% complete for materials and 40% complete for conversion costs. What are the total equivalent units for direct materials? What are the equivalent units for conversion cost? What is the cost per equivalent units for materials? What is the cost per equivalent unit for conversion cost? Determine the cost of goods completed and transferred out Determine the cost of ending work-in-process inventory.

Explanation / Answer

Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Opening WIP                             -   0%                                 -                               -   0%                                 -   Units started and completed                8,000.00 100%                    8,000.00                8,000.00 100%                    8,000.00 Closing WIP(12,000 -8,000)                4,000.00 80%                    3,200.00                4,000.00 40%                    1,600.00 Equivalent Units                 11,200.00                    9,600.00 Current Month Costs                 26,700.00                 24,400.00 Cost per Equivalent units                            2.38                            2.54 Closing WIP Units                    3,200.00                    1,600.00 Cost of Closing WIP                    7,628.57                    4,066.67 Units started and completed                    8,000.00                    8,000.00 Cost of Units started and completed                 19,071.43                 20,333.33