Cost of Units Completed and in Process The charges to Work in Process—Assembly D
ID: 2531682 • 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.
a. Based on the above data, determine the different costs listed below.
If required, round your interim calculations to two decimal places.
b. Did the production costs change from the preceding period?
Yes
c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?
Increase
Explanation / Answer
Cost production report Flow Of Units Physical Units Direct Material A Conversion cost Units to be accounted for Beginning work in process inventory 10000 Units started 47000 Total u nits to be accounted for 57000 Units accounnted for: Transferred out from units of opening WIP 10000 Units started and completed this period 36000 Completed and transferred out (b) 46000 Ending work in progress inventory© 11000 Total units to be accounted for (f) 57000 Calculation of equivalent units Units in Beginning WIP n 10000 10000 % of completion of Beginning WIP in last period 100% 20% % of completion of Beginning WIP completed in current period m 0% 80% Equivalents units of Beginning Wip A (n*m) 0 8000 Units started and completed B 36000 36000 36000 Units of Ending WIP 11000 11000 11000 % completion 100% 100% 20% Equivalent units in ending WIP E 11000 11000 2200 Total Equivalent units A+B+E 47000 46200 Cost per equivalent units Direct Material A Conversion cost Total Cost per equivalent units Cost during the period $94,000 193930 $287,930 Total equivalent units 47000 46200 Cost per equivalent units d $2.00 $4.20 $6.20 Cost charged to production Beginning Work in Process, 10000 Cost incurred during the period $287,930 Total cost accounted 297930 Cost allocated Work in Process, Beginning 10000 To complete Inventory in process Beginning (4.2*8000) $33,600 $33,600 Cost of completed Beginning, Wip $43,600 Started and completed b*d $72,000 $151,200 $223,200 Transferred 0ut $266,800 Work in process Ending c*d $22,000 $9,240 $31,240 Total cost assigned 298040 The differnce is due to roounding off 1. Cost of beginning work in process inventory completed this period. $33,600 2. Cost of units transferred to finished goods during the period. $266,800 3. Cost of ending work in process inventory. $31,240 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $4.20 ans 1 Conversion cost Beginning WIP (10000-(2000*2))/2000 3 Current period 4.2 Increase 1.2 If conversion cost is not rounded off Cost production report Flow Of Units Physical Units Direct Material A Conversion cost Units to be accounted for Beginning work in process inventory 10000 Units started 47000 Total u nits to be accounted for 57000 Units accounnted for: Transferred out from units of opening WIP 10000 Units started and completed this period 36000 Completed and transferred out (b) 46000 Ending work in progress inventory© 11000 Total units to be accounted for (f) 57000 Calculation of equivalent units Units in Beginning WIP n 10000 10000 % of completion of Beginning WIP in last period 100% 20% % of completion of Beginning WIP completed in current period m 0% 80% Equivalents units of Beginning Wip A (n*m) 0 8000 Units started and completed B 36000 36000 36000 Units of Ending WIP 11000 11000 11000 % completion 100% 100% 20% Equivalent units in ending WIP E 11000 11000 2200 Total Equivalent units A+B+E 47000 46200 Cost per equivalent units Direct Material A Conversion cost Total Cost per equivalent units Cost during the period $94,000 193930 $287,930 Total equivalent units 47000 46200 Cost per equivalent units d $2.00 $4.20 $6.20 Cost charged to production Beginning Work in Process, 10000 Cost incurred during the period $287,930 Total cost accounted 297930 Cost allocated Work in Process, Beginning 10000 To complete Inventory in process Beginning (4.2*8000) $33,581 $33,581 Cost of completed Beginning, Wip $43,581 Started and completed b*d $72,000 $151,114 $223,114 Transferred 0ut $266,695 Work in process Ending c*d $22,000 $9,235 $31,235 Total cost assigned 297930 The differnce is due to roounding off 1. Cost of beginning work in process inventory completed this period. $33,581 2. Cost of units transferred to finished goods during the period. $266,695 3. Cost of ending work in process inventory. $31,235 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $4.20 If any doubt please comment