Question

Exercise 3-10 (Part Level Submission) Overton Company has gathered the following information. 20,700 236,800 25,500 Units in beginning work in process Units started into production Units in ending work in process Percent complete in ending work in process: Conversion costs Materials Costs incurred: Direct materials Direct labor Overhead 60 % 100 % $ 103,000 $530,170 $187,000 (a) Your answer is correct. Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs The equivalent units of production 257500 247300

Answer 1

A 1 2 Units completed and transferred 3 Ending work in process 4 The equivalent units of production 5 C D Physial units Materials Conversion 232,000 232,000 232,000 25,500 25,500 15,300 257,500 247,300 6 7 Costs incurred 8 Equivalent units of production 9 Unit costs Materials Conversion $ 103,000 $ 717,170 257,500 247,300 $ 0.40$ 2.90

A D B C Physial units Materials |=20700+236800-25500 =+B2*100% 25500 =+B3*100% =+C2+C3 Conversion =+B2*100% =+B3*60% =+D2+D3 5 1 2 Units completed and transferred 3 Ending work in process 4 The equivalent units of production 5 6 7 Costs incurred 8 Equivalent units of production 9 Unit costs Materials 103000 =+C4 =+B7/B8 Conversion =530170+187000 =+D4 =+C7/08