Cost of Units Completed and in Process The charges to Work in Process—Assembly D
ID: 2489879 • Letter: C
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. Work in Process—Assembly Department Bal., 1,600 units, 35% completed 17,440 To Finished Goods, 29,600 units ? Direct materials, 29,000 units @ $9.50 275,500 Direct labor 84,600 Factory overhead 39,258 Bal. ? units, 45% completed ?
Question; Based on the above data,
D. what is the cost of unit started and completed during the period. I) direct materials unit cost II)Conversion unit cost III) total unit cost IV) X units started and completed V) cost of units started and completed. Thanks
Explanation / Answer
Units in process at beginning of period...................................................... 1600
Units placed in production during period................................................... 29000
Less units finished during period............................................................... (29600)
Units in process at end of period................................................................ 1000
A
B
C
D
Equivalent Units
Whole Units
Direct Materials
Conversion
1
Inventory in process, beginning
(35% completed)
1600
0
1040
1
2
Started and completed
28000*
28000
28000
2
3
Transferred to finished goods
29600
28000
29040
3
4
Inventory in process, ending (45% completed
1000
1000
450
4
5
Total units
30600
29000
29490
5
6
*29600 – 1600
6
A
B
C
Costs
Direct Materials
Conversion
1
Total costs for period in Assembly Department
$ 275500
$ 123858*
1
2
Total equivalent units (from above)
/ 29000
/ 29490
2
3
Cost per equivalent unit
$ 9.5
$ 4.2
3
4
*$84600 + $39258
4
Cost of units started and completed
$383600 = [($9.5 + $4.2) × 28000 units]
Beginning work in process balance......................................................... $ 17440
Conversion costs incurred during period
(1040 equivalent units × $4.2)............................................................. 4368
Cost of beginning work in process completed during period $21808
2. Cost of beginning work in process........................................................... $ 21808
Cost of units started and completed during period................................. 383600*
Cost of units transferred to finished goods during period...................... $405408
$383600 = [($9.5 + $4.2) × 28000 units]
3. $17,625; determined as follows:
Direct materials ($9.5 × 1000 units)....................................................... $9500
Conversion costs ($4.2 × 450 equivalent units)..................................... 1890
Cost of ending work in process inventory............................................... $11390
Note: The cost of ending work in process is also the ending balance of Work in Process—Assembly Department.
4. $13.63 ($21808 /1600 units)
b. Yes. cost per unit of the units started & completed in period is $13.7 ($9.5 + $4.2). Since the cost per unit of the beginning work in process completed during the period is $13.63, the production costs have dropped.
A
B
C
D
Equivalent Units
Whole Units
Direct Materials
Conversion
1
Inventory in process, beginning
(35% completed)
1600
0
1040
1
2
Started and completed
28000*
28000
28000
2
3
Transferred to finished goods
29600
28000
29040
3
4
Inventory in process, ending (45% completed
1000
1000
450
4
5
Total units
30600
29000
29490
5
6
*29600 – 1600
6