Question

E5-48B Complete five-step procedure in second department (Learning Objective 5) Brookman Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithog- raphy process. Units: Work in process, December 1 (80% of the way through 5,000 units Transferred in from the Polishing and Cutting Department 22,000 units ? units during December. Work in process, December 31 (70% of the way through the process) 8,000 units Costs: Work in process, December 1 (transferred-in costs, $21,900; direct materials costs, $20,750; and conversion costs, $5,540). Transferred in from the Polishing and Cutting Department $48,190 during December Direct materials added during December. Conversion costs added during December. 96,900 57,550 90,400 Requirements 1. Summarize flow of physical units and compute total equivalent units for three cost 2. Summarize total costs to account for and compute the cost per equivalent unit for 3. Assign total costs to (a) units completed and transferred to Finished Goods Invento categories: transferred-in, direct materials, and conversion costs. each cost category. and (b) units in December 31 Work in Process Inventory. ry Requirements 1. Fill-in the time line for Grand Lips. 2. Use the time line to help you compute the total equivalent units and the cost per equivalent unit for June an 3. Assign total costs to (a) units completed and transferred to Finished Goods (b) units still in process at June 30. Prepare a T-account for Work in Process Inventory to show activity during June including the June 30 balance. 4.

Need the answers for both requirements. Thank you very much.

Answer 1

Step 1
Physical Flow of Units
Particulars	Units	Particulars	Units
Opening Work in process	5,000	Units completed and Transferred:
Direct Material added	22,000	Opening WIP	5,000
		Units started and completed*	14,000
		Total units completed and Transferred	19,000
		Closing Work in process	8,000
	27,000		27,000
Direct Material added less closing Work in process
22000 - 8000
Step 2
Equivalent Units of Production
Particulars	Transferred - in Cost	Material	Conversion Cost
Opening Work in process	0	5000	1000
	5000 units (100% - 100%)	5000 units (100% - 0)	5000 units (100% - 80%)
Units started and completed	14,000	14,000	14,000
Closing Work in process	8000	0	2400
	8000 units *100%	8000 units (100% - 100%)	8000 units (100% - 70%)
Total Equivalent Units	22000	19000	17400
Step 3
Cost per Equivalent Units
Particulars	Transferred - in Cost	Material	Conversion Cost	Total
Current cost added during May	96,900	57,550	90,400	244,850
Total Equivalent Unit	22000	19000	17400
Cost per Equivalent Unit	4.4045	3.0289	5.1954	13
Step 4
Cost to Units Completed and Ending WIP Inventory
Cost assigned to units completed and transferred out:
Cost of beginning Work in process		48,190
Cost to complete beginning Work in process
Transferred In	0
Material (5,000 * 3.0289)	15145
Conversion (1,000 * 5.1954)	5,195	20,340
Cost of units started and completed		176,805
Total Cost of Units completed and transferred		245,335
Cost to Closing Work in process
Transferred In (8,000 * 4.4045)	35236
Material	0
Conversion (2,400 * 5.1954)	12469
Total cost to closing Work in process		47705
Step 5
Reconcile Cost
Beginning WIP		48190
Cost added		244850
Total Cost to account for		293040
Cost assigned to units completed		245335
cost assigned to ending WIP		47705
Total cost account for		293040