Question

1. The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 7,200 Conversion costs, 3,000 units, 60% completed 6,000 Materials added during April, 10,000 units 25,000 Conversion costs during April 36,800 Goods finished during April, 12,000 units April 30 work in process, 1,000 units, 50% completed All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. A. What are the Direct material equivalents units? B. What is the Conversion equivalent units? C. What is the conversion cost per equivalent unit for April?

Answer 1

Requirement A:

	Materials
	Total units	% of completion	Equivalent units
Work in process inventory , April 1	3,000	0%	0
Units started and completed [12,000-3,000-1,000]	9,000	100%	9,000
Total units completed during April	12,000		9,000
Work in process inventory, April 30	1,000	50%	500
Total	13,000		9,500

Requirement B:

	Conversion cost
	Total units	% of completion	Equivalent units
Work in process inventory , April 1	3,000	40%	1,200
Units started and completed [12,000-3,000-1,000]	9,000	100%	9,000
Total units completed during April	12,000		10,200
Work in process inventory, April 30	1,000	50%	500
Total	13,000		10,700

Requirement C:

Coversion cost during April	$36,800
÷ Equivalent units	10,700
=Conversion cost per equivalent unit	$3.44