Question

eBook Calculator Cost of Units Completed and in Process The charges to Work in Process - Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production Work in Process Assembly Department bal, 5,000 units, 25% completed 13,500 To Finished Goods, 115,000 units Direct materials, 118,000 units 247.300 $2.1 Direct labor 222,700 Factory overhead 86,570 Bal., 2 units, 65% completed Cost per equivalent units of $2.10 for Direct Materials and $2.60 for Conversion Costs a. Based on the above data, determine the different costs listed below If required, round your interim calculations to two decimal places. 1. Cost of beginning work in process inventory completed this period $ 13.500 X $ 2. Cost of units transferred to finished goods during the period 38,600 x $ 3. Cost of ending work in process inventory 38,600 X $ 4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.) 2.60 X b. Did the production costs change from the preceding need

Answer 1

Units in ending inventory = 5,000+118,000-115,000 = 8,000 units

1.

Cost of beginning work in process inventory:

Beginning balance	$13,500
Conversion costs incurred during the period (5,000*75%*2.60)	9,750
Total cost of beginning work in process inventory	$23,250

2.

Cost of units transferred to finished goods:

Cost of beginning work in process	$23,250
Cost of units started and completed during the period:
Direct material (110,000*$2.10)	231,000
Conversion (110,000*$2.60)	286,000
Total costs of units transferred to finished goods	$540,250

3.

Cost of ending work in process inventory:

Direct material (8,000*$2.10)	$16,800
Conversion (8,000*65%*$2.60)	13,520
Total cost of ending work in process inventory	$30,320

4.

Cost per unit of completed beginning work in process = $23,250 / 5,000 = $4.65 per unit

b. Yes