Question

Required information [The following information applies to the questions displayed below.] The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information refers to the assembly department's November production activities Percent of Direct Materials Added Percent of Conversion Assembly Department Beginning work in process Units transferred out Ending work in process Units 2,000 9.00 3,000 100% $1,581 (includes $996 for direct material and 5585 for conversion) Beginning work in process inventory Assembly dept Costs added during the month Direct materials Conversion $ 10,404 12235

Answer 1

Solution

Cost per Equivalent unit of production
	Numerator	/	Denominator
	Current period cost	/	Equivalent units of production	Cost per Equivalent unit of production
Direct material	$ 10,404.00	/	10200	$       1.02
Conversion	$ 12,285.00	/	9100	$       1.35

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	2,000	60%	40%	40%	60%
Units introduced	10,000
Total units to be accounted for	12,000
Completed and Transferred unit	9,000	0%	0%	100%	100%
Ending WIP	3,000	0%	0%	80%	30%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	2,000	40%	800	60%	1,200
From units started/Introduced	7,000	100%	7,000	100%	7,000
Total	9,000		7,800		8,200
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	3,000	80%	2,400	30%	900
Total EUP	12,000		10,200		9,100