Use the following information to answer questions 6, 7, and 8. Winchester Salad
ID: 2583748 • Letter: U
Question
Use the following information to answer questions 6, 7, and 8.
Winchester Salad Dressing had beginning work-in-process for process 1 in July of $248,320 consisting of $101,640 of materials and $146,680 of conversion costs. There were 16,000 units in beginning work-in-process, 40% complete as to conversion costs. Materials are added at the beginning of the process. During July, 34,000 were transferred out and 9,000 remained in ending inventory. The ending work-in-process was 70% complete for conversion cost. Costs during the period amounted to $781,200 for direct materials and $1,009,280 for conversion.
6) The number of units started in process 1 during July was __________?
7) The cost assigned to completed units in process 1 was __________?
8) The cost assigned to the ending WIP in process 1was __________?
Explanation / Answer
6) Unit started in process 1 : Unit transfered out+Ending work in process-Beginning work in process
= (34000+9000-16000)
Unit started in process 1 : 27000 Units
Cost per equivalent unit :
7) Cost assigned to completed units in proces 1 was = (20.53+28.68)*34000 = 1673140
8) Cost of ending work in process = (9000*20.53+6300*28.68) = 365454
Material conversion cost Beginning wip 101640 146680 Cost added during period 781200 1009280 Total cost 882840 1155960 Equivalent unit 43000 40300 Cost per equivalent unit 20.53 28.68