Question

3 $ 36,3060 sion cost a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs e the cost of ending work in process inventory the cost of units transferred out of the department during the month. K Prey 23 of 24Next >

Answer 1

Answer a
Calculation of equivalent units of production for materials and conversion costs
	Physical Units	% Complete with respect to Material Cost	Equivalent units for Materials Costs	% Complete with respect to Conversion Cost	Equivalent units for Conversion Cost
Units in beginning WIP completed	800	50%	400	70%	560
Units started and completed	12500	100%	12500	100%	12500
Units in ending WIP	500	60%	300	60%	300
Equivalent Units			13200		13360
Answer b
Calculation of cost per equivalent unit for materials and conversion costs
		Materials	Conversion
Cost added during the month		$36,300.00	$359,384.00
/ Equivalent units		13200	13360
Cost per equivalent unit		$2.75	$26.90
Answer c
Cost of ending work in process
Materials cost [300 EU * $2.75]	$825.00
Conversion cost [300 EU * $26.90]	$8,070.00
Cost of ending work in process	$8,895.00
Answer d
Calculation of cost of units transferred out of the department during the month
		Materials	Conversion	Total
Cost in the beginning WIP		$595.00	$2,147.00	$2,742.00
Cost incurred to complete beginning WIP		$1,100.00	$15,064.00	$16,164.00
Cost incurred on units started and completed		$34,375.00	$336,250.00	$370,625.00
Cost of units transferred out of the department during the month				$389,531.00