Cost of Units Completed and in Process The charges to Work in Process—Assembly D
ID: 2542142 • 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.
Cost per equivalent units of $1.30 for Direct Materials and $2.20 for Conversion Costs.
a. Based on the above data, determine the different costs listed below.
If required, round your interim calculations to two decimal places.
Work in Process—Assembly Department Bal., 8,000 units, 70% completed 21,600 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $1.3 244,400 Direct labor 292,100 Factory overhead 113,580 Bal. ? units, 50% completed ?Explanation / Answer
A .1
* Since material is placed at begning of process no material is applied to begning WIP
*Conversion cost will be applied only to 30% Begining WIP . as 70% is already complete
2. unit started and completed during the period is = unit trasferred to finished goods - begning WIP
=184000 - 8000 = 176000
cost of units stared and completed during the period = (176000 * 1.3) material + (176000 * 2.2)conversion
= 228800 + 387200 = 616000
Cost of units transferred to finished goods during the period. = Cost of begning WIP +cost of units stared and completed during the period
=[21600+5280]+616000
= 26880+616000
= 642880
3)Ending WIP = Begning WIP + units Started - Units transferd
= 8000 + 188000 - 184000
= 12000 units
cost of ending WIP = (ending units * % of completion * material cost ) + (ending units * % of completion * conversion cost )
=(12000 * 100% *1.3) +(12000 * 50% * 2.2)
=15600 + 13200 = 28800
4).
Total cost of begning WIP = Begning Cost + Current Cost
=21600+5280
=26880
Cost per unit of the completed beginning work in process inventory = Total cost of begning WIP / Units
= 26880 / 8000
=3.36 per unit
Material Conversion Cost of beginning work in process inventory completed this period. 0 * 1.30= 0 8000 * .30 * 2.20 =5280 Cost of beginning work in process inventory completed this period. 0 + 5280 = 5280