Cost of Units Completed and in Process The charges to Work in Process—Assembly D
ID: 2552437 • 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., 8,000 units, 40% completed 29,120
Direct materials, 188,000 units @ $2. 376,000
Direct labor 586,100
Factory overhead 227,900
Bal. ? units, 35% completed ?
To Finished Goods,184,000 units?
Cost per equivalent units of $2.00 for Direct Materials and $4.40 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.
1. Cost of beginning work in process inventory completed this period.$2. Cost of units transferred to finished goods during the period.$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 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?
Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 8,000 Add: Units Started in Process 188,000 Total Units to account for: 196,000 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 8000 Units started and completed 176,000 Ending Work in Process 12,000 Total Units to be accounted for: 196,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 60% 4,800 Units started and completed 100% 176,000 100% 176,000 Ending Work in Process 100% 12,000 35% 4,200 Total Equivalent units 188,000 185,000 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 376,000 814,000 Equivalent Units 188,000 185,000 Cost per Equivalent unit 2 4.4 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (8000 units) Equivalent unit Cost per EU Total Cost Beginning Cost 29120 Material 0 2 0 Conversion Cost 4,800 4.4 21120 Cost of units completed from Beg WIP 50240 Units started and Transferred out (176000 units) Equivalent unit Cost per EU Total Cost Material 176,000 2 352000 Conversion Cost 176,000 4.4 774400 Total Cost of Units completed and transferred out: 1126400 Ending Work in process (12,000 units) Equivalent unit Cost per EU Total Cost Material 12,000 2 24000 Conversison Cost 4,200 4.4 18480 Total cost of Ending Work in process: 42,480 Req a: Cost of Beginning WIP completed: $ 50240 Cost of Units transferred to FG (1126400+50240): $ 1176,640 Cost of Ending WIP: $42480 Req B: Cost fo Units of Beginnig WIP completed: 50240 Units 8000 Cost per unit 6.28 Current cost per unit 6.4 Cost increase from previous year. Req C: Beginning Cost of WIP 29120 Less: matrial (8000 units @ 2) 16000 Conversion cost in Beg. Inv. 13120 Number of Eq. units of conversion 3200 Conversion cost per unit 4.1 Conversion cost per unit has Increased frm $ 4.10 to $4.40