Can you please show me the steps to solve this problem also. The charges to Work
ID: 2544387 • Letter: C
Question
Can you please show me the steps to solve this problem also.
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., 2,000 units, 45% completed Direct materials, 47,000 units $1.5 Direct labor Factory overhead Bal, 2 units, 70% completed Cost per equlvalent unlts of $1.50 for Direct Materlals and $2.90 for Converslon Costs. 5,430 To Finished Goods, 46,000 units 70,500 98,600 38,280 a. Based on the above data, determine the different costs llsted below If required, round your interim calculations to two decimal places 1. Cost of beginning work in process iventory completed this period. 2. Cost of units transferred to finlshed goods during the perlod. 3. Cost of ending work in process inventory. 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent b. Did the production costs change from the preceding period? C. Assuming that the direct materlals cost per unlt did not change from the preceding period, did the converslon costs per equivalent unlt Increase, decrease, or remaln the same for the current perlod?Explanation / Answer
Answer 1. Assembly Department Cost of Production Report (FIFO Method) Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning 2,000 Started into production 47,000 Total units 49,000 Units accounted for Goods Units Completed & transferred out: From Beginning WIP 2,000 - 1,100 (0% materials, 55% conversion costs) Started & Completed (46,000 - 2,000) 44,000 44,000 44,000 Work in process, Ending (49,000 - 46,000) 3,000 3,000 2,100 (100% materials, 70% conversion costs) Equivalent units accounted for 49,000 47,000 47,200 Materials Conversion Costs Total Total Cost to Account for: WIP, Beginning - - 5,430 Cost added in current period 70,500 136,880 207,380 Total cost to be account for 70,500 136,880 212,810 Cost added in current period 70,500 136,880 207,380 Equivalent Units of work done in current Period 47,000 47,200 Cost per Equivalent Unit 1.50 2.90 4.40 Assignment of Costs: Goods Units and Completed out (46,000 Units) WIP, Beginning -2,000 Units - - 5,430 Cost added to Beg. WIP in Current period - 3,190 3,190 (1,100 Units X $2.90) Total of Beginning Inventory - 3,190 8,620 Started and completed - 44,000 Units 66,000 127,600 193,600 (44,000 units X $1.50) (44,000 units X $2.90) Total Cost of good units completed & transferred out 66,000 130,790 202,220 WIP, Ending - 3,000 Units 4,500 6,090 10,590 (3,000 units X $1.50) (2,100 units X $2.90) Total Cost accounted For 70,500 136,880 212,810 Answer a-1. Cost of Beginning WIP Inventory Completed 8,620 Answer a-2. Cost of Units transferred to Finished Goods 202,220 Answer a-3. Cost of Ending WIP 10,590 Answer a-4. Cost per Unit of Beginning WIP ($8,620 / 2,000 Units) 4.31 Answer b. Yes Answer c. Conversion Cost will Increase.